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Continental to buy part of closed plant
(Paducah Sun, The (KY) (KRT) Via Acquire Media NewsEdge) Jul. 15--MAYFIELD, Ky. -- New ownership of part of the sprawling Continental General Tire plant that once employed more than 2,100 workers could enable the sale of the entire property.
The Mayfield City Council authorized Mayor Arthur Byrn at its meeting Monday night to sell some of the plant property to Continental.
Byrn said that city has held title to portions of the plant since 1959 and Continental Tire is exercising its right to purchase that portion, as stated in the lease. Byrn said Mayfield has owned the original office buildings, manufacturing floor and warehouse. Byrn said he was told that the company wanted to buy those portions because it had a potential buyer for the plant.
Hank Eisenga, vice president for manufacturing at Continental's Mount Vernon, Ill., plant, would not confirm that there is a buyer for the Mayfield plant. Eisenga said that since the site was put up for sale, there have been several interested parties looking to buy at least portions. Buying what Continental Tire did not own is another step in that direction, Eisenga said.
Eisenga managed the Mayfield plant before it closed.
In marketing the property, Continental seeks to sell 376 acres, including a closed 58-acre hazardous waste landfill, for $13.8 million.
General Tire opened the plant in 1960; Continental acquired the company in 1987.
The plant is on U.S. 45 about three miles north of Mayfield and sprawls over nearly 2.25 million square feet.
The plant closed on Feb. 1, 2007. Production peaked in the late 1970s and early 1980s with nearly 2,150 workers at the Mayfield plant. By 2004, fewer than 1,000 people worked at the plant.
Continental plans to announce additional investments at Mount Vernon on Wednesday. Eisenga said several western Kentucky and southern Illinois residents work at the site. Last year, the company invested $78 million in upgrades to the plant.
Kenny Colston can be contacted at 575-8652.
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