SOUTHINGTON, CT — The local business and employment scene was stunned this week after a manufacturing company in Plantsville announced its imminent closure.
Officials with the J.J. Ryan Corp., doing business as "Rex Forge" in Plantsville, notified the state Department of Labor on Monday, Feb. 3, of its imminent plans to cease operations this month.
The announcement comes after a federal arbitration ruling on Jan. 15 settled a dispute the company had with its lone customer, according to records in U.S. District Court in Ohio.
According to a letter sent by Rex Forge Controller Colleen Hedges, the closure will take place between Feb. 10-24 and result in 103 employees losing their jobs.
Rex Forge is located at 355 Atwater St. in the Plantsville section of Southington.
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Rex Forge manufactures steel fittings, molding steel into parts used in the transportation industry.
According to Rex Forge, its lone customer was Ohio-based Dana Corp., which manufactures drive trains and other propulsion systems for a variety of car and truck manufacturers.
Both companies were in the U.S. District Court in Ohio on Nov. 18, 2024, for an arbitration hearing regarding multiple disputes both Rex Forge and Dana Corp. had against each other.
According to the final arbitration ruling handed down on Jan. 15, Dana and Rex Forge were disputing several issues in their business arrangement.
Ultimately, the federal arbitrator awarded Dana Corp. a total of $965,358 on Dana's claim of being subjected to both excess freight and "non-conforming" charges.
Meanwhile, Rex Forge was awarded $144,383 on its claim of "improper debits" taken by Dana.
The dispute was not mentioned in Rex Forge's letter to the state regarding the company's impending closure.
Hedges, in her letter, said Dana officials notified Rex Forge on Jan. 29 that it was exercising "its right to terminate its contract" with Rex Forge to supply them with parts.
She said this was done "with no advance notice."
As a result, with no primary customers, Rex Forge is, simply, closing.
"The termination of the contract was unexpected and unforeseen. Rex Forge had every reason to believe and expect, from the daily actions and communications with Dana, that future business would continue. It was shocking to receive the notice that Dana no longer wished to do any business with Rex Forge," wrote Hedges to the state.
"Without the Dana contract, which represents the sole business for Rex Forge, the company has no ability to continue on and will be shutting down its operations permanently."
She said employees have already been notified of the closure and the job losses are likely permanent.
Rex Forge is working with employees to help them find work elsewhere and to prepare for the job market.
The positions impacted include all Rex Forge workers, from the chief executive officer to manufacturers, inspectors, and other members of management.
For the full notification letter sent to the State of Connecticut, click on this link.
For more information on Rex Forge in Plantsville, click on this link.
For details regarding the federal arbitration ruling in the Rex Forge-Dana Corp. dispute, click on this link.