The planned closure of Olds' Banner Pharmacaps plant this fall will have a "considerableî impact on the community, the chair of the Olds Institute for Community and Regional Development said.
"The community without the Banner plant is certainly different in our Olds landscape and it's a sad loss for us as well,î said Rob Smith.
Patheon Inc., which bought the plant in December, announced on March 8 it will close the facility that employs more than 100 people as of Oct. 31.
Patheon's chief administrative officer, James Mullen, said the closure is part of a company-wide downsizing effort to make its operations more cost-effective and efficient and will save the company roughly $8 million.
Although Olds will lose one of its largest employers, Smith said the closure likely won't hurt the community's abilities to attract investment and other companies.
"There's always a risk when large global businesses choose your community and Patheon's decision is unfortunate and actually downright sad,î he said. "But the benefits still outweigh the risks in terms of looking at Olds and we've got assets that will continue to attract new and stable businesses to the community.î
Smith added the institute has worked hard in the past year to revamp its investment attraction strategiesóincluding promotion of high-speed Internet capabilities in Oldsó to attract new businesses to the community and expand existing companies.
"We don't really feel that this is going to hold us back in any way, shape or form,î Smith said. "I think that we feel like we've got the future secured by the initiatives that we are currently undertaking to assure that there is opportunity for business and community economic development in Olds and the surrounding area.î
Increases in the number of business permits and licences and population growth are "evidence of the strong local economy,î he said, and the institute is currently having ongoing discussions with a number of "substantialî businesses that could employ anywhere from five to 50 or more employees.
Smith said he anticipates announcements in the next few months of new businesses coming to the community.
Olds mayor Judy Dahl said she wants to stay "proactiveî and "positiveî in the wake of the closure announcement since the town has received little information about how the closure process will unfold.
"We really don't have any conclusions on what we're going to do or where we're going to go yet. It's really too early.î
She added she is hopeful the more than 100 workers losing their jobs may have new opportunities in the community for employment down the road.
"Do we know that they might not be rehired from the people who are taking over? I don't know those answers yet,î she said.
When asked if she knew if another business or manufacturer was eyeing the plant, she said "I have no idea.î
Dahl said she wants to have a "good community conversationî about possible ways to turn the closure into an opportunity for the town.
Bruce Rowe, MLA for Olds-Didsbury-Three Hills, was less optimistic about the closure news and called the announcement a "shocker.î
"It has a much larger economic impact on the whole town, in a town the size of Olds, than it would if it was Calgary or Edmonton or even Red Deer,î he said. "Those 100 and some-odd people could, if they choose, probably find a job somewhere else but I don't know whether there's 130 job opportunities in Olds right now.î
He added the community will likely experience a significant economic trickle-down from the closure, especially if those people losing their jobs move, retire or hold onto their cash a little more tightly.
"It will be felt in the stores and the restaurants and the other businesses.î
One employee at the plant said Patheon was having meetings with workers in the days after the closure announcement to discuss layoffs and severance packages.
Jennifer Almond, a spokeswoman for Patheon, said some employees have already received layoff notices.
"The community without the Banner plant is certainly different in our Olds landscape and it's a sad loss for us as well." Rob Smith, chair of the Olds Institute for Community and Regional Development
