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State to focus on new uses for GM-Moraine plant

By Thomas Gnau

Staff Writer

Friday, August 29, 2008

In the wake, of General Motors' rejection of a state overture seeking to keep GM's Moraine plant operating, the state will focus on finding new uses for the plant, a spokeswoman said Friday Aug. 29.

The state offered GM more than $56 million to keep 2,400 full-time employees at the Stroop Road assembly plant — $54,239,220 in a job retention tax credit and a $2 million "rapid outreach" grant.

But Kelly Schlissberg, a spokeswoman for the Ohio Department of Development, said GM declined the offer.

"GM has communicated to us that they appreciate Ohio's continuing efforts to bring a new vehicle platform to the Moraine plant," Schlissberg said in an e-mail. "However, we have been told by GM ... there is no product platform for the Moraine plant that would retain the existing work force. Therefore, the company is officially declining our incentive offer."

The response from GM came from Ed Barry, the company's executive director for state and local government relations, Schlissberg said.

"Obviously, we are very disappointed," she said.

Ohio will continue to work with a Dayton-area task force formed to simultaneously persuade GM leaders to keep the plant open, find a new user for the plant and prepare workers there for new careers, Schlissberg said.

"That is my understanding," said Sharon Basel, a GM spokeswoman. "Our position has not changed."

"Although the news that GM has declined this offer is disappointing, there is still some reason to have a small measure of hope," Dave Hicks, Moraine city manager, said in an e-mail to task force members Friday.

Schlissberg said she didn't foresee the state offering another incentive package to the automaker.

"As far as incentives offered, this was a considerable one," she said.

Relations between the state and GM remain strong, she said. Recently, GM announced a new shift and a new product for its Lordstown, Ohio plant in the Youngstown area.

"Everything was very cordial, and they (GM) made it very clear they were appreciative of the work we've done on this, but they had to decline it," Schlissberg said.

Now, the state will work to help local officials try to identify other uses of the facility. The state will also try to "support workers in any way we can."

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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