‘Judge Ok’s sale of glass plant’

By Thomas Olson
Pittsburgh Tribune Review, October 5th, 2005

More then a year after flooding damaged furnaces at Glenshaw Glass Co., and 11 months after PNC Bank ousted its owner and hired a management company that closed the gates, a bankruptcy judge on Thursday approved the plant’s sale to a Pittsburgh businessman.

How soon it could restart, however, is an open question.

William Kelman, who leads a group that will pay just under #3.8 million for the 100-plus year-old Shaler bottle making plant, says that rising natural gas prices and obtaining state assistance to restart at least one of the plant’s primary considerations in determining how soon bottles could once again roll off the lines.

With the court’s blessing obtained, the sale is expected to close by the end of this month, or early November.

“We’re looking into how to restructure the operation to operate more efficiently,” Kelman said. “But I don’t want to get any hopes up too quickly.”

Kelman must also negotiate new contract with the two unions representing the plant’s former employees and convince former and new customers that the reconstituted plant will be able to turn out the quality glass in smaller batches it had previously been know for.

Margaret Good, president of The Meridian Group, hired by the plant’s largest creditor last November to operate the plant, first as a custodian in state-authorized receivership, and then as operator in Chapter 11 bankruptcy court, said she is excited for Glenshaw’s future.

But she said the new Glenshaw Glass faces immediate obstacles, primarily the rising price of natural gas, its highest operating cost next to labor.

“The critical issue with what happens to Glenshaw will be the energy costs,” she said.

Kelman said customers have been receptive to his plans to restart the plant, particularly in light of the bankruptcy of Anchor Glass Container Corp., Glenshaw’s Tampa, Fla- based former sister company that closed a plant in Connellsville, Fayette County, last November.

“There’s a concern where they’re going to get good glass, particularly in smaller runs, which Glenshaw has been known for,” he said.

Joe Piccirilli, co-chairman of Pittsburgh Brewing Co., said his company is eager to do business with Glenshaw again.

“We’ve always tried to support local companies,” he said.

Lou Brudnock, president of Local 134 of Glass Molders Pottery Plastics and Allied Workers International Union, said he believes Kelman’s group will be able to make money with Glenshaw. “I’m optimistic there will be new life for this plant. He (Kelman) indicated it would be a slow start-up,” he said.