Union Tank to close East Chicago plant

BY ANDREA HOLECEK, Times of Northwest Indiana
holecek@nwitimes.com

EAST CHICAGO | Union Tank Car Co. will close its East Chicago plant at the end of May eliminating the jobs about 70 salaried and 350 hourly employees.

The union workers are represented by Boilermaker's Local 524.

The company will shift production to its newer, non-union facilities in the South.

Union Tank said in a statement that it was closing the more than 40-year-old plant because of the declining market for tank cars sales and leases, therefore "long-term demand estimates require the company to consolidate its manufacturing operations."

Union workers contend the company is moving orders to the non-union plants to reduce labor costs.

Union Tank Car was one of more than 100 manufacturing companies solely owned by the Pritzger family's Marmon Holdings until 60 percent of the conglomerate was sold to Warren Buffet's Berkshire Hathaway Inc.

The deal was completed March 18.