Flint Hills to close

After 13 name changes, eight owners and more than 50 years, time may have run out on the Odessa chemical plant.

Flint Hills Resources officials called in the plant's 395 full-time employees Wednesday and told them the plant will shut down during the first half of 2009.

Katie Stavinoha, Flint Hills director of public affairs, said employees who stay with the plant through certain dates will be offered severance packages. The company will also offer some of them jobs at other company plants, none of which are affected by Wednesday's announcement.

The company will also retain some employees after the closure to help with the site's decommissioning. Some customer service positions could be retained to support operations at other Flint Hills locations.

"We continue to need employees," she said.

The decision to close was based on reviews that determined Flint Hills doesn't have the capital revenue to make the plant "competitive in a global environment," Stavinoha said.

"We don't believe the multimillion dollar investment is prudent given the economic outlook," she said.

In a news release, Flint Hills plant manager Mike Wilkes said the decision wasn't a reflection on the employees, something Stavinoha reiterated.

"Ultimately, it's going to take more than a committed workforce to maintain the operation of this plant," she said.

Rick Skillern, board chairman of the Odessa Chamber of Commerce, was disappointed about hearing of the plant's closing.

"It's been here 50 years," Skillern said. "It's a very important part of our community ... you just hate to see this happen."

But, he said it could have come at a worse time.

"The only silver lining, if there is one, is that our labor market is extremely tight. Hopefully these 400 families can find employment and keep them here in Odessa," Skillern said. "This closing is not good for anyone for sure."

Skillern said the chamber would like to help the company in its transition.

"As a chamber, we'd like to assist in finding a buyer for that place - it's been here 50 years," Skillern said. "(It) has almost 400 employees, that's 400 families that are going to be directly affected."

A man identifying himself as a Flint Hills worker called the OA Wednesday to tell about the announcement. While he wouldn't give his name, he said he was led to believe that Flint Hills wouldn't try to find a buyer.

The long-term future of the site will be evaluated after the company takes care of employees and customers, Stavinoha said Wednesday.

"We believe that an outright sale of the asset is very unlikely," she said. "However, if an interest is shown, that is something we would certainly review."

Flint Hills took over the plant in August 2007. It bought the plant, and three others, from Huntsman Corp. earlier last year for $350 million. At the time, Wilkes said the Odessa plant's future was brighter than ever, calling the company's philosophy creating "real value in the long run."

The plant was built by El Paso Products Co., a subsidiary of El Paso Natural Gas, between 1957 and 1958, after W.D. Noel and other businessmen convinced company officials to build in Odessa.

In 2000, the plant was used by Sen. Joe Lieberman to attack then-Gov. George W. Bush's environmental policies when the vice presidential candidate visited Odessa in the weeks leading up to that year's presidential election.