Missouri Gov. Says Ford to Keep Hazelwood Plant Open

ST. LOUIS September 19, 2003; Desiree J. Hanford writing for Dow Jones reported that Ford Motor Co. will keep open a suburban St. Louis assembly plant the auto maker had planned to close in the middle of the decade, according to Missouri Gov. Bob Holden.

The Hazelwood facility employs 2,600 people and is where Ford Explorers and Mercury Mountaineers are assembled.

In a statement, Gov. Holden said the contract agreement that Ford and the United Auto Workers reached Monday provided an opportunity for Missouri to negotiate with the auto maker.

Ford spokeswoman Anne Marie Gattari said she can't comment on plant closings until after the new contract is ratified by the union membership. Local unions around the country will be voting on the contract in coming weeks.

Gov. Holden received word Friday morning that the plant in Hazelwood would remain open, said spokeswoman Mary Still. She didn't know, however, who gave the information to him.

Missouri has finished separate negotiations with Ford, Hazelwood and St. Louis County that "will help secure a major investment" in the assembly plant, said Gov. Holden. His statement added the company has tentatively agreed to assemble vehicles at the facility and make an additional investment to upgrade the plant.

Missouri, Hazelwood and the county will provide job-training assistance, tax credits and targeted local property-tax abatements, the statement added. Ms. Still couldn't put a dollar value amount on those items.

A UAW spokesman couldn't immediately be reached for comment.

Ford announced early last year it planned to close the Hazelwood assembly plant and other plants around the country. Overcapacity was one reason the auto maker cited.