Oak Engineered Products Inc., the plastic manufacturer that set up shop two years ago in the former Stylette plant on Willow Avenue in Oakdale, has closed its doors.
The company has outsourced production of its shelving, tool organizers and other consumer items to regional plastic molders in Erie and Franklin, company President Rick Martz said.
Following the September 2004 flood that ravaged Oakdale and put Stylette out of commission, Mr. Martz, a former Stylette president, used his severance pay to give the business one more shot -- under a new name but in the same building in the middle of town.
But his plans did not work out. In mid-April, he removed the factory's sign and shuttered the plant.
"It was a very disappointing thing to have to do," Mr. Martz said. "We gave it a try, but the volume of sales that we anticipated did not come through. The cost of operating in Oakdale became too prohibitive."
Plans to distribute to some large retail chains, such as Wal-Mart and Kmart, fell through, resulting in less revenue than expected, he said. "We weren't able to pick up some of the customers that we were confident we were going to be able to."
Oak Engineered Products had about 35 full-time workers who all found alternate jobs or retired before the plant closed.
Mr. Martz will continue running the business from an office in McMurray, along with one administrative manager and a crew of independent sales representatives working on commission.
"We regret the financial losses, but we thought it was a good effort," Mr. Martz said. "And we can still turn it around and hopefully recover."
The company's products will continue to be sold under the Oak Engineered Products name in retail stores such as Big Lots, Busy Beaver, Family Dollar and Dollar General.
Mr. Martz started manufacturing in Oakdale in 2006, after purchasing product molds from Stylette and leasing the plant Stylette had used since 1952.
Stylette stopped production and laid off more than 100 employees after record floods caused $6 million in damage and ruined the manufacturer's plastic mold injection machines. Stylette was sold to a competitor.