As Meridian Magnesium layoffs loom, Eaton Rapids prepares for worst

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Two people were injured and more than 100 workers were evacuated from an auto parts plant in Eaton Rapids early Wednesday after a fire and a series of explosions. Matthew Dae Smith, Lansing State Journal


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Meridian Magnesium employees were notified in May 3 meeting the company will eventually lay people off. Fire and explosions destroyed part of the Eaton Rapids factory complex.

(Photo: Eric Lacy / Lansing State Journal)Buy Photo

EATON RAPIDS – While a factory damaged by a fire and series of explosions faces uncertain staffing levels, city officials and others brace themselves for the possibility that hundreds may lose their jobs. 

Eaton Rapids Mayor Paul Malewski said Tuesday the city intends to make accommodations for those he anticipates will be laid off by Meridian Magnesium Products of America.

Malewski and City Council have agreed to offer assistance to people who struggle to pay their bills for city utilities. Malewski also said officials also have discussed creating a community food bank. 

He’s hopeful the state also will help, especially with job placement assistance for those with automotive manufacturing experience. 

“We have a corner of the safety net,” Malewski said. “We hope the state will step up with the other three corners.”

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This video taken from a drone shows both the fire and explosions at night and the damage in the daylight. The fire at Meridian Magnesium Products in Eaton Rapids began early Wednesday, May 2, 2018. (Video courtesy of Brad Hendrickson) Whitney Dawn Carlson, Lansing State Journal

The cause of the May 2 fire and series of explosions at Meridian Magnesium remains unknown. The automotive manufacturing facility is Eaton Rapids’ largest employer and had over 400 employees before the disaster. 

David Brown, a Meridian Magnesium official, wouldn’t comment Tuesday evening on whether the company will announce layoffs this week. Brown said the company will issue a news release Wednesday, but declined to offer details. 

Employees were notified last week of planned layoffs by the company in an hour-long meeting held at VFW National Home for Children. Another meeting for employees is scheduled 11 a.m. Thursday at the same location. 

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A May 2 fire and series of explosions at the Meridian Magnesium plant in Eaton Rapids caused “millions” of dollars worth of damage, Eaton Rapids Fire Chief Roger McNutt said.

 (Photo: Nick King/Lansing State Journal)

George Asher, Meridian Magnesium’s plant manager, said in a letter given to employees after last week’s meeting that all employees would be paid May 2 and May 3 and could use paid time off May 4. 

“It is our intention to return to normal operations as quickly as possible,” Asher said in the letter. 

Attempts Tuesday to reach Asher weren’t successful. Messages left with other company officials weren’t returned. 

The fire and explosions at Meridian Magnesium, 2001 Industrial Drive, started at about 1:30 a.m. May 2 inside the main plant within the 208,000-square-foot complex. 

About 150 people were forced to evacuate the plant; two were hospitalized with minor injuries, officials said.

Meridian Magnesium’s Plant 4 and Plant 5 within its complex weren’t damaged and are safe for occupancy, Eaton Rapids Fire Chief Roger McNutt said Monday. 

Companies reach out

At least a few local companies that specialize in automotive manufacturing have job openings and are eager to help people who may get laid off. 

Eaton Rapids-based manufacturer Dowding Industries employs about 180 and is always looking for machinists and welders, said Rebecca Roberts, the company’s executive director. 

Dowding posted a message of support on its Facebook page for Meridian Magnesium employees who may lose their jobs. It included the phrase #MagStrong. 

As of late Tuesday afternoon, Dowding had five job openings in Eaton Rapids posted on its website. 

“It’s not like we have jobs for all (Meridian Magnesium) employees, but we’re just offering anything we can do to help,” Roberts said. 

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Meridian Magnesium employees face uncertainty 

Two injured, 100 evacuated after fire

In Potterville, Profile Metal Forming employs about 30 people and could use “two to three” experienced stamping operators, said Leigha Cline, the company’s human resources manager. 

Like Dowding, Profile Metal Forming also has a need for welders, Cline said. The company also has locations in McKenzie, Tenn. and Newmarket, N.H. 

News of Meridian Magnesium’s catastrophic event hurts other manufacturers in the Lansing area because it’s a close-knit industry with countless opportunities for career advancement. 

“A lot of people think that it’s underpaid, hard labor, not in the best environment,” Cline said. “But I think the truth is there’s a lot of opportunity for growth once you step into this line of work.”

‘We are ER’

There are several online fundraisers for those affected by the Meridian Magnesium disaster. Some organizations are also planning events. 

A non-profit called Morgan’s HUGS challenges local businesses to donate backpacks filled with school supplies to children of Meridian Magnesium employees. 

The organization is founded by 14-year-old Morgan Scarbro, who has been doing charity work most of her life. Morgan plans to donate at least 100 filled backpacks with money she’s raised. 

Debbie Scarbro, Morgan’s mother, worked in the automotive industry for over 30 years and understands how difficult it can be without job — even temporarily.

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Early this morning, the Eaton Rapids Meridian Magnesium factory caught fire. Timothy Dunham, who works at the plant, got it on video. Timothy Dunham, Lansing State Journal

Before Debbie Scarbro retired in 2007, she was laid off several times. Scarbro assumes most Meridian Magnesium employees are used to working long hours. 

“When you go from overtime pay to unemployment that’s a big hit,” Scarbro said. 

For those who want to donate for the Morgan’s HUGS cause, visit facebook.com/MorgansHUGS. 

Eaton Rapids Area Chamber of Commerce President Chelsie Swaynie said the chamber, with over 100 members, is open to coordinating any event that can help displaced workers. 

The city’s motto: “We are ER.” 

“Let’s get the whole city together and figure it out as a family,” Swaynie said. 

Investigation update

Malewski, Eaton Rapids’ mayor, said Tuesday afternoon it was unclear when local fire officials would be able to get inside the Meridian Magnesium facility to investigate an area where they believe the fire started. 

Messages left Tuesday with McNutt, the city’s fire chief, weren’t returned. 

McNutt said late Monday afternoon crews hired by Merdian Magnesium were removing debris from the complex so he could inspect an area in the main plant. 

McNutt suspects the fire and series of explosions occurred at the north end of the plant where scrap metal is stored, near a series of conveyor belts.

The matter is an Eaton Rapids investigation and doesn’t include assistance from the Michigan State Police or state fire marshal, said Lori Dougovito, a state police spokesperson. 

Dougovito declined Tuesday to speculate what circumstances could lead to state officials conducting their own investigation. 

Eric Lacy is a reporter for the Lansing State Journal. Contact him at 517-377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy.

 

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