After more than 90 years, operations are winding down this month at Superior Plating Inc., a metal finishing company whose factory is one of the last industrial properties in northeast Minneapolis.
As recently as September, all 35 production lines were humming, manned by about 100 workers. But with a tough economy and its business going to cheaper foreign metal platers, the company decided to close its doors.
Superior got a reprieve a few months ago when its unionized workforce agreed to wage concessions, said President Michael McMonagle. But when a plan to raise new capital faltered, Superior had no choice but to file Chapter 11 bankruptcy in November.
Its bankruptcy reorganization plan listed assets of $3.8 million and liabilities of $4.4 million. The plan to settle with creditors calls for the business to shut down and for the 110,000-square-foot plant to be auctioned off early next year. The company is scheduled to close next week.
"It's very strange not to hear all the noises of things operating," McMonagle said on a recent tour of the factory, where just one line was running, priming and coating large metal parts with chrome.
Only 12 workers remained. The only other people at the plant were there to inspect Superior's equipment, which is also scheduled to be sold off.
The bankruptcy and decision to close followed several years of problems for Superior. McMonagle said they began a decade ago when computer companies that accounted for a large part of Superior's business moved their manufacturing operations to Asia, where they found other suppliers for metal finishing and stamping parts. "That whole piece of our business pretty much went away," McMonagle said.
Outsourcing, chiefly to foreign markets, has been a challenge for the entire metal plating and treating industry for the last several years, according to IBISWorld, a Los Angeles-based market research firm. Revenue for the industry has grown by an average of less than 1 percent a year since 2005. IBISWorld has forecast that by the end of next year the number of U.S. metal plating and treating firms will have fallen by about 4 percent since 2002.