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2 buyers backed out of DPI plant after closure, Mahler says

News Photo by Mike Gonzalaz The Decorative Panels International plant in Alpena sits idle on Wednesday. The plant, which announced it was closing, had interest from a pair of developers who wanted to purchase and reopen it. The plans fell through however and the facility’s future remains in doubt today.

ALPENA — Shortly after Decorative Panels International announced the closure of its plant in Alpena last month, a pair of potential developers showed interest in purchasing and reopening it.

After touring the facility and learning that key employees who are needed to restore operations had found other employment, the plans have cooled, despite efforts from Alpena Area Chamber of Commerce Economic Development Director Mike Mahler working with DPI and the potential developers to get a deal done.

Mahler said, in his monthly development update, that the potential buyers also had concerns that many of DPI’s customers had already moved on and found other companies to do business with.

“Following the tour, both buyers indicated that several of the longtime employees successfully found other positions in the community soon after the announcement, thereby making it difficult to reopen and run efficiently and effectively,” Mahler said in his update. “Both felt they needed long-term expertise in place for this plant to be viable. There was also concern by both parties that the plant’s primary customers had already shifted orders to other suppliers.”

Mahler added that it is still too early to know how harshly the plant’s closure will impact the local economy and area businesses. He said he knows for certain that utility companies will lose revenue with the plant not paying them. Mahler speculated the loss of utility sales to DPI may have a negative impact on other customers.

“We know our local utilities were significantly impacted by this closure, and we will all feel the impact as time passes and the costs are reallocated to remaining utility customers,” he said.

Although the plant is technically still open to limited staff, operations have ceased. Mahler said that the longer the plant sits idle, the harder it will be to reopen it. That is why he said local authorities need to devise a plan for what the future holds for the property.

“With each day that passes, there is a reduced likelihood of the plant being reopened,” Mahler said. “Planning for the next phase of that property is becoming the more likely scenario. We will continue to offer our support and seek updates from the company. In the meantime, it is good to hear that several of the dislocated employees were able to find local jobs right away.”

The closure of the plant impacted more than 150 union employees and many more non-unionized workers. The company said in a press release announcing the closure that financial challenges proved significant and insurmountable, leading to the decision to close the plant in Alpena and another one in Ohio.

The company said the decision was made after careful consideration and in-depth exploration of alternatives.

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