NewsPublic Affairs / July 13, 2018

Terre Haute Braces For Possible Sony Plant Closure

The company informed Terre Haute officials it can no longer meet the staffing thresholds required by city code to get a tax abatement for 2018.Terre Haute, Sony2018-07-13T00:00:00-04:00
Terre Haute Braces For Possible Sony Plant Closure

City officials worry Sony’s DADC disc plat in Terre Haute could soon close following a decision to not renew a tax abatement.

Lindsey Wright/WFIU-WTIU

A staple of the Terre Haute economy since 1984 could soon be leaving the city for good.

Sony’s DADC plant -- which produces CDs, DVDs, and Blu-Ray discs -- is not pursuing a tax abatement for 2018.

In a letter addressed to City Clerk Michelle Edwards, the company says they’ve “infused nearly $5 billion into the local economy” and they’re grateful for the years of abatements the city has provided.

But they say the company can no longer meet the staffing thresholds required by city code to get the abatement.

Sony says they have consolidated disc making operations across North America by closing facilities in New Jersey, Oregon, and Canada. While that’s helped Terre Haute, it is unclear how long the facility can remain open.

City Council Member Don Morris says the writing is on the wall.

“Technology grows so fast. You have to adjust—I’m not saying they didn’t—but this particular field of theirs has taken a huge hit,” Morris says. “I think they knew it was coming.”

Morris says he’s hopeful Sony can continue operating.

According to city documents, the plant employed over 1,300 people at its peak.

However, the Terre Haute Chamber of Commerce says Sony now employs less about a third as many people.

The plant announced in January that 375 workers would lose their jobs between March and August this year.

Sony representatives were not immediately available for comment.

 

 

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