INVESTOR MAY BUY GLENSHAW GLASS
Published: Tuesday, August 16, 2005
By Joyce Gannon
Pittsburgh Post-Gazette
Negotiations were under way yesterday to sell the shuttered Glenshaw Glass Co. to an investor who bought and restarted the idled L.E. Smith Glass Co. in Westmoreland County this year.
“We don’t have an agreement yet,” said Margaret Good, court-appointed chief operating officer of Glenshaw Glass, the Shaler company that is in Chapter 11 bankruptcy.
But Good said she hoped to make an announcement soon that William A. Kelman, the owner of L.E. Smith, would buy Glenshaw Glass.
Glenshaw Glass closed in November after sustaining severe damage in the floods that ravaged the region in September. But financial problems for the 109-year-old bottle maker were mounting before the flood.
Like other glass makers in the region, Glenshaw was hurt by escalating costs of energy needed to run its furnaces, foreign competition and other market factors that pushed it to default on an $11.5 million mortgage from PNC Financial Services Group. Former owner John Ghaznavi was ousted, and the company, which employed 300 workers, was placed under court receivership until it was transferred to federal bankruptcy court in March.
But Good said an auction would not preclude any potential buyers from making a bulk bid for assets necessary to restart the facility, which suffered substantial damage in flooding in September.
Lou Brudnock, president of Local 134 of the Glass Molders Pottery Plastics and Allied Workers Union, which represents some of Glenshaw Glass’ workers, said Kelman told him he planned to restart the plant if he acquires it.
“The union is always willing to work with whoever the buyer might be,” Brudnock said.
The union’s contract runs through March 2006.
Restarting the operation would require an investment of at least $4 million to $5 million because of last fall’s flood damage, Good estimated after the plant was closed.
“But the right buyer could make money. I’m optimistic there will be a buyer here in the end,” Brudnock said.
Glenshaw made bottles primarily for beer and liquor.
Kelman, who could not be reached for comment, bought L.E. Smith Glass, of Mount Pleasant, when it was in court-ordered receivership.
The company, which produces specialty tableware and decorative glass, closed abruptly last summer when talks broke down between its lender and a prospective buyer.
It employed 40 active and 47 laid-off workers at the time. To date, Kelman has restarted only part of the plant and recalled only a portion of the work force, which totaled close to 150 five years ago.
But Kelman said this year that he expected the plant's furnaces to be fully operating when the company celebrates its 100th anniversary in 2007.
Kelman envisions developing L.E. Smith into a tourist destination that would feature a factory store and museum.
Kelman’s father owns metals fabricator Pittsburgh Annealing Box Co. in McKees Rocks, and Kelman this year also acquired the assets of Cross Stone Products, a Virginia company that made brass and copper planters and umbrella stands.
jgannon@post-gazette.com
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