By Howard Greninger, The Tribune-Star
howard.greninger@tribstar.com
TERRE HAUTE - Starting in March, Pfizer is permanently cutting 660 employees from its former Exubera production facility, south of Terre Haute.
The employees have been on paid leave since October, when Pfizer Inc. announced it would halt marketing and production of the inhaled insulin Exubera drug because of disappointing sales.
The jobs will be eliminated in phases, with all positions gone by the middle of this year, company officials said Monday.
"Our first concern is about our colleagues. Looking at the future, we have various options that we will be considering, as we were considering with Exubera, but we really have no plans so far. That is work to be done yet," said Jay Cayado, Pfizer global manufacturing vice president and team leader for the Americas.
"We don't have anything at this point that we can point our fingers and say 'this is destined for Terre Haute'," Cayado said.
Cayado said Pfizer's move to return the rights for Exubera to Nektar Therapeutics was unique and a first for Pfizer.
"I think it is an indication of how, in today's world and global economy, companies need to act. Even though the decision is extremely tough and difficult, I commend the company for making the right decision," he said.
Pfizer is providing internal job postings and has hired a company to set up a career center to help workers.
Frank Foley, Pfizer's Terre Haute site leader, addressed employees early Monday.
"We gave them an overview of the general plan. We ultimately want to get down to the individual basis and define what their future is and what the benefits will be. Pfizer has a fairly well-defined benefit in situations like this," Foley said.
Pfizer is offering 13 weeks severance pay, plus three additional weeks for every year of service; limited to a total of two years, said Rick Chambers, Pfizer spokesman.
Pfizer is keeping 140 employees at least through 2008. Those employees make the antibiotics Cefobid and Unasyn.
"It is subject to generic competition, so that puts it under some pressure, but we have not made any decisions around it," Foley said of the plant's production of those medicines.
Steve Witt, president of the Terre Haute Economic Development Corp., called Pfizer's announcement "quite a blow. It is a tremendous loss for our community, not just in terms of economic impact. That is 660 assets to our community in the form of great workers with families. There is no way to sugarcoat it. It is a tremendous blow to all of us."
Witt said he hopes Pfizer will continue to have a presence in Vigo County.
"We have a lot of other good things going on in the community and a number of other great companies and we are going to survive this and move forward," Witt said.
He points to CertainTeed Corp. and Boral Bricks, each which plan to open facilities this year. Also, Sony DADC and Bemis Inc. continue to be strong manufactures, each employing more than 1,000 workers.
"We've got a lot to be thankful for in our community, especially when you look back over the past six or seven years," Witt said. "Aisin Brake & Chassis is a company that said it would create about 180 jobs and they are at 500 workers or so. Plus, Thyssen Krupp [Presta] is a relatively new company in the community that is growing. Despite the recent downsizing at [the cold rolled steel mill] CSN, it is a company that we are very fortunate to have in our community. They still have over 200 employees," Witt said.
"Staples went through an expansion last year and will hire more people this year. They are close to 500 workers as well. Also, Burkes Garden Deck Components is a new facility in the county's industrial park to come on line in mid-year, with about 20 people to start."
In addition, Witt said medical facilities are making significant investments in the community, including a new Union Hospital facility under construction.
One agency that will feel a direct impact from Pfizer's cuts is the United Way.
Jim Bertoli, executive director of the United Way of the Wabash Valley, said Pfizer officials told the agency it will honor its $180,000 employee match. Employees had pledged $180,000, which was matched dollar for dollar by Pfizer, for a total of $360,000, about one-fifth of the United Way's 2007 funds.
The employee pledges are uncertain, Bertoli said, adding he hopes most of those pledges are from employees still working.
"If they close the entire plant, that will be devastating, not just to our United Way, but to all charitable organizations and the overall economy of the Wabash Valley. That would be 800 jobs total and good-paying jobs, so obviously have a major affect," Bertoli said.
Bertoli said many charitable organizations are losing donors, while more people are in need.
Pfizer, in the 1990s, had been among the top 10 taxpayers in Vigo County. That changed as the company began to decrease its plant size.
In 2003, Pfizer ceased operations at its bioprocessing facility and began demolition of that facility. Pfizer also relocated its veterinary medicine research and development facility to Kalamazoo, Mich. and ceased operation of its Terre Haute research facility.
In July 2005, Pfizer completed the sale of its former bioprocessing area and utilities operations to Danisco USA Inc. and then began buying steam and water from Danisco. The changes were made to allow Pfizer to focus on Exubera. Pfizer invested more than $300 million in the past five years at the Terre Haute plant related to Exubera.
Danisco USA Inc. now ranks as the ninth-largest county taxpayer with a net assessed value of more than $21.8 million for 2007, according to the Vigo County auditor's office.
Pfizer for 2007 had more than $2.5 million in real property tax abatements and more than $8.4 million in personal property tax abatements. The company paid more than $142,000 in property taxes and more than $199,400 in personal property taxes for 2007, according to the auditor's office.
"My heart goes out to all the folks who are losing their jobs and the impact on the community overall," said Terre Haute Mayor Duke Bennett. "We hope to meet with Pfizer officials soon and make contact with the corporate office to see what we can do with this plant and any other Pfizer activity. We want them to know we have enjoyed the relationship we have had with them in the community and we still want to be partners with them."