NORPAC to close Stayton plant for good Oct. 31, lay off nearly 500 employees

NORPAC has filed notice it will lay off 485 workers and close its Stayton processing facility Oct. 31 as part of the company’s bankruptcy and impending sale of its assets to Oregon Potato Company for $155.5 million.

NORPAC filed the notification in accordance with the state’s Worker Adjustment and Retraining Notification Act.

The Stayton plant was the original location for the Stayton Canning Company, which later became NORPAC. It dates back to 1924 and until 2013 also was the site of its corporate offices.

Bankruptcy:NORPAC files Chapter 11 bankruptcy, reaches deal to sell itself to Oregon Potato Company

NORPAC, a co-operative company for processing vegetables owned by farmer members, filed for Chapter 11 bankruptcy protection Aug. 22 stating it owes over 5,000 debtors over $100 million.

The filing indicated operations will continue under a purchase agreement with Oregon Potato Company, a privately held company owned by Frank Tiegs.

The bankruptcy filing indicated Oregon Potato Company would purchase assets including the company’s Salem, Brooks and Quincy, Washington processing facilities, but did not indicate what it would do with the Stayton facility.

NORPAC stated at that time it had 2,700 employees.

Workers at NORPAC’s Stayton plant received notification Aug. 30 the company would close the Stayton processing facility for good Oct. 31.

The letter indicated the plant closure is expected to be permanent.

“Since that initial filing last week, OPC has now also agreed to purchase the Stayton plant,” the letter from NORPAC vice president of operations Paul D. Scott said. “This means the Stayton plant will be included in the auction in October with the other NORPAC plants as one complete package. Please note, however, that OPC’s indication at this time is not to continue operations at the Stayton plant.”

The letter to the Stayton employees stated affected employees do not have the right to claim a job currently held by an employee at another NORPAC facility.

But it encouraged them to apply for open positions at the other locations as Oregon Potato Company intends to continue to operate the plants after the bankruptcy proceeding ends.

About 100 members of Teamsters Local Union 670 currently work at the Stayton plant, and employees at the facility are also represented by two other unions.

Local 670 secretary and treasurer Michael Beranbaum said the union is working with NORPAC and Oregon Potato Company to ensure affected employees at the Stayton plant will be considered for open positions at the Salem, Brooks or Quincy, Wash., facilities.

Beranbaum pointed out when NORPAC sold its canning operations in 2017 and closed its Salem canning facility, all union members at that facility were given the option to take a job at one of the company’s other locations.

“Nobody lost a job,” Berenbaum said.

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Email Bill Poehler at bpoehler@StatesmanJournal.com or follow him on twitter here.