LEITCHFIELD, Ky. (WDRB) -- MTD Products Inc. in Leitchfield will put 295 people out of work when it closes in June.
The factory is a major employer in Grayson County that makes parts for lawn mowers and other outdoor equipment.
A statement from the Valley City, Ohio, based company says it will offer impacted employees severance packages and the chance for other jobs within the company. The company did not agree to provide a spokesperson for an interview.
“MTD is grateful for the hard work and dedication of these employees and the continued support of the Leitchfield community,” Craig Dukes, senior vice president of Human resources, said in a press release. “We recognize the significant impact this closure will have on employees and their families and will be providing separation support including severance benefits, outplacement services and preferential hiring opportunities at MTD’s other US facilities.”
People who live in Leitchfield said the closure will be felt throughout the community.
“My husband’s company has held the cleaning and maintenance contract since the doors opened. We weren't part of the 295 employees showcased on the press release, but our family and our business loses our contract, and then we have employees that we pay who work at MTD. So they lose their job as well," Misty Thomas said. “It affects our community. The ripple effects are bigger than I think some people realize ... We've all gone into emergency and survival mode to find out how to figure out how do we protect these families”
City officials say three things are cause for concern: placing skilled workers into equally high-paying jobs, losing the city's skilled workforce to other communities and what will replace MTD when the company leaves.
“It's going to impact the city coffers,” Leitchfield Mayor Rick Embry said. “We get a 1.25% of occupational tax from every employee. We get net profit tax from them. And it's going to impact the city treasury quite a bit.”
City and state officials are working to find a new business to fill the building.
“[MTD] is among our better-paid employers,” Embry said. “They start at about $14 and hour, but they go as high as $27 an hour.”
Embry and State Sen. Stephen Meredith said they were shocked to hear the news, but they’re optimistic and "hopeful" about the future of the facility and the city.
“The next phase is looking at securing the property and making this opportunity known throughout the United States and worldwide,” Meredith said. “There is never a good time for this, and our hearts go out to the employees and management at MTD. But if you had to have a time for this to happen, there is not a better time for this to happen to our community than right now ... Every plant we have here is looking for employees, so a lot of this is going to be mitigated by that. But we don't want to move sideways we want to grow."
“We’ll survive,” Embry added. “Leichfield is strong financially. We have a strong tax base. We’ll survive, and we are going to move on. Chances are we will end up with someone better than MTD.“
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