Pallet supplier plans 165 layoffs in Indianapolis

A company that supplies pallets to other businesses plans to terminate 165 fulltime workers at its southwest-side Indianapolis plant in late February, but there’s a chance that many of those employees will land work at the same facility.

In a notice to the Indiana Department of Workforce Development dated Tuesday, Chep Recycled Pallet Solutions LLC said it would permanently lay off the employees Feb. 25 at its facility at 6450 W. Hanna Ave. It did not provide a reason for the decision.

Most of the employees are listed as plant labor workers. Other workers include 10 production shift supervisors, two service center supervisors, two office managers and a service-center manager. None of the employees belong to a union.

Chep said Columbus, Ohio-based Medrano USA Inc. would be staffing the facility beginning Feb. 25 and was hiring for the positions.

“Chep Recycled employees affected by this layoff are eligible to apply for these positions [with Medrano] beginning today,” Chep said in its letter to the state.

A spokeswoman for Medrano said the company was taking over management of the facility for Chep and would be hiring workers, but she said she wasn’t certain how many employees would be re-hired.

A Chep spokesman did not respond to a phone call Wednesday afternoon.

Orlando, Florida-based Chep is one of the world’s largest providers of pallets and distribution containers. Chep leased more than 200,000 square feet at the Indianapolis facility in 2014.

Medrano USA is a subsidiary of Spain-based logistics company Grupo Medrano. Indianapolis will be its first market outside of Columbus.

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