In about a month, Gaylord Chemical Co. will begin its physical move from Bogalusa to Tuscaloosa, Ala.
Along with the business, the company will take some tax dollars and about 27 high-paying jobs, and deliver a substantial blow to the local economy, said City Administrator Jerry Bailey.
Gaylord makes Dimethyl Sulfoxide (DMSO), a by-product of the wood industry that is used as a commercial solvent and a pharmaceutical agent, and its precursor Dimethyl Sulfide (DMS) in its Bogalusa plant. The company and its predecessors have been making DMSO at the site since 1961. "That s a long time, saidPresident Paul Dennis. And we hate to leave Bogalusa. We have a lot of employees who have been here for generations. But the move will give us a much larger capacity for making DMSO, and that would be very difficult to do at the Bogalusa site. We needed more capacity, and we estimate that we will double our capacity in Tuscaloosa.
In Alabama, Gaylord will partner with Hunt Refining Co., which will supply it with DMS, and expand and relocate its own plant to an adjacent site.
We plan to start moving in late July although there will still be some operations here for the next few months, said Dennis. We re taking some equipment, but most will be built new. That s happening now. They re finishing construction.
Any equipment left in Bogalusa will be dismantled and sold for scrap, he said.
Since Gaylord leases the Willis Avenue property from Temple Inland, Dennis said he does not know what will happen next at that location.
But it could become evident before long.
When we cease operations here it will be about 90 days until we re in operation in Tuscaloosa, said Dennis. We re thinking now that we ll start moving in late July and be operational in Tuscaloosa in late October.
The majority of the approximately 27 Bogalusa employees will make the move with the company, he said. Gaylord asked the ones it will still need to cover its remaining operations, and provided takers with moving packages, Dennis said.
Bailey said the average salary for the jobs that are being lost to Tuscaloosa is $75,000 a year. If you multiply that by 27, figure 20 percent of the total as disposable income, then compute sales taxes, it means a loss to Bogalusa of approximately $15,000 a year in sales taxes, he said.
In addition, Gaylord pays the City of Bogalusa $109,000 in property taxes, Bailey said.
Everything considered, I would estimate the city alone will probably lose close to one-quarter of a million dollars in generated revenues because of the move, he said.
Along with the business, the company will take some tax dollars and about 27 high-paying jobs, and deliver a substantial blow to the local economy, said City Administrator Jerry Bailey.
Gaylord makes Dimethyl Sulfoxide (DMSO), a by-product of the wood industry that is used as a commercial solvent and a pharmaceutical agent, and its precursor Dimethyl Sulfide (DMS) in its Bogalusa plant. The company and its predecessors have been making DMSO at the site since 1961. "That s a long time, saidPresident Paul Dennis. And we hate to leave Bogalusa. We have a lot of employees who have been here for generations. But the move will give us a much larger capacity for making DMSO, and that would be very difficult to do at the Bogalusa site. We needed more capacity, and we estimate that we will double our capacity in Tuscaloosa.
In Alabama, Gaylord will partner with Hunt Refining Co., which will supply it with DMS, and expand and relocate its own plant to an adjacent site.
We plan to start moving in late July although there will still be some operations here for the next few months, said Dennis. We re taking some equipment, but most will be built new. That s happening now. They re finishing construction.
Any equipment left in Bogalusa will be dismantled and sold for scrap, he said.
Since Gaylord leases the Willis Avenue property from Temple Inland, Dennis said he does not know what will happen next at that location.
But it could become evident before long.
When we cease operations here it will be about 90 days until we re in operation in Tuscaloosa, said Dennis. We re thinking now that we ll start moving in late July and be operational in Tuscaloosa in late October.
The majority of the approximately 27 Bogalusa employees will make the move with the company, he said. Gaylord asked the ones it will still need to cover its remaining operations, and provided takers with moving packages, Dennis said.
Bailey said the average salary for the jobs that are being lost to Tuscaloosa is $75,000 a year. If you multiply that by 27, figure 20 percent of the total as disposable income, then compute sales taxes, it means a loss to Bogalusa of approximately $15,000 a year in sales taxes, he said.
In addition, Gaylord pays the City of Bogalusa $109,000 in property taxes, Bailey said.
Everything considered, I would estimate the city alone will probably lose close to one-quarter of a million dollars in generated revenues because of the move, he said.
