LG Chem plant workers on furloughs

HOLLAND, Mich. (WOOD) - A lakeshore company that was meant to be a beacon for alternative technology is now putting its workers on furlough.

In July of 2010, the ground-breaking of the LG Chem electric car battery factory in Holland Township was such a big deal that it brought Pres. Barack Obama to town.

But the factory has yet to make a single battery, 24 Hour News 8 has learned, and its workers are having to take furloughs.

In a story back in 2011, 24 Hour News 8 was told the plant was scheduled to open sometime in 2012.

It hasn't helped that General Motors has postponed production of the Chevrolet Volt -- for which the plant was meant to manufacture batteries -- at least twice in 2012. The latest suspension of production was announced in August.

The problem is Americans aren't buying electric cars -- at least not as many as planned -- which means the market for batteries like the one the Holland plant is supposed to make is slow.

No one from LG Chem would speak with 24 Hour News 8 on camera Thursday, but spokesperson Randy Bolieau confirmed via email that the plant has had rolling furloughs for all of its 200 employees since April. They have been working about 75% of their schedule.

Bolieau wrote that during employees' unpaid time they would be eligible for unemployment benefits and would still maintain the medical benefits.  

The plant was made possible in part by more than $150 million in funding from the US Department of Energy. 24 Hour News 8 learned Thursday that more than $130 million of that has been spent thus far.  

As far as state tax credits, a rep from the Michigan Economic Development Corporation told 24 Hour News 8 the plant would start being eligible for tax credits starting in 2012, meaning the plant would not see any credits until after filing tax returns in 2013.

Boileau wrote the company still plans to meet hiring goals they committed to in 2010.

In 2011, it was reported that the plant planned to hire as many as 400 people by 2015. Thursday, the spokesman said the number is 300, and always had been. 

Production will start when market demand for the batteries increases -- but there's no set time table on when that will happen.

But with all those employees and no scheduled date to start production, 24 Hour News 8 asked what the workers would be doing.

The only answer to that question was, "LGCMI is part of LG Chem's long-term strategy for supplying advanced energy storage solutions. While the current slowness in the market is frustrating, it doesn't change the company's long-term commitment to being a global leader in lithium ion technologies."

When 24 Hour News 8 pressed for specific details, there was no response.   

No one from the Lakeshore Advantage or the City of Holland would speak on camera Thursday. Holland's assistant city manager did tell 24 Hour News 8 the plant still has time to meet its goals and with the plant so close, the city has a real opportunity.