Katana Summit may close plants

COLUMBUS - Katana Summit LLC will likely close its wind tower manufacturing plants in Columbus and Ephrata, Wash., if a buyer for the operations can't be found.

Employees at both manufacturing plants were notified of the decision today, but will continue working until existing contracts are completed, the company said in a press release. Once those orders are complete, temporary layoffs will begin.

President and CEO Kevin Strudthoff said most of the contracts should be filled by Nov. 1.

Katana Summit currently employs 214 people at its Columbus plant, which opened in 2008, and 79 in Washington.

Studthoff said there currently isn't a timeline for when a decision will be made on the plant shutdowns.

The company began its search for a potential buyer "a little while back," Strudthoff said, and candidates have been identified. He declined to name any interested companies.

According to the release, the steel wind tower manufacturer saw a significant jump in production this year because of increased demand for wind turbines fueled by the pending expiration of the federal Production Tax Credit.

The Columbus-based company projected record output for 2011 after receiving orders for 130 units to be delivered by mid-2012. Fifty of those utility-scale towers, up to 330 feet tall, were expected to be completed in 2011 with the remaining 80 rolling over into 2012.

Strudthoff said the Columbus plant, located at 1600 E. 29th Ave., has produced 120 units so far this year, which is a record pace, but many wind farm projects are ending soon.

Katana Summit added 100 employees at the Columbus plant over the past year to meet this demand.

In 2010, when just 48 towers were manufactured, approximately 60 employees were temporarily laid off, however, most of those individuals were later rehired.

The company said the majority of wind turbine development for 2013 has been halted until government policy regarding the Production Tax Credit is more clear.

The credit, created under the Energy Policy Act of 1992, provides developers with an income tax break of 2.2 cents per kilowatt-hour over the first 10 years of electricity production from new utility-scale turbines, according to the American Wind Energy Association. It's set to expire Dec. 31 if no federal action is taken.

Katana Summit blamed ongoing uncertainty in the wind industry for its decision to sell the manufacturing plants.

"It's unfortunate that the gridlock in Washington, D.C., has prevented the extension of the Production Tax Credit (PTC)," Strudthoff said in the release. "Despite support from both parties, it seems that the PTC extension has become a political football in an election year and jobs are being lost because of it."

Strudthoff added that he hopes a buyer for Katana Summit's operations can be found, but that isn't likely unless federal lawmakers act on the renewable energy policy.

"That's become a real problem," he said.