Official: Calex Corp. to go out of business

CAMPBELL -- Calex Corp., the largest private-sector company in this financially strapped city, is planning to go out of business in two weeks, Mayor John E. Dill said.
Dill spoke with Calex's owner Tuesday and was told the rising cost of natural gas is the primary reason the company plans to close.
The aluminum extrusion company on Wilson Avenue employs about 175 people and has four extrusion presses. It uses natural gas to heat its furnaces, Dill said.
"They're not out of business yet," he said. "They're starting to downsize and eventually they'll lock their doors."
Dill said he has asked the governor's development director for this area to see whether the state can do anything to save the company.
Calex ownership couldn't be reached late Tuesday for comment.
Earlier financial blows
The Calex closing would be the latest in a series of devastating financial blows to the city.
Cold Metal Products, which produced rolled stainless steel, went out of business in 2002. The company employed 120. The city lost $160,000 in annual income tax when the company closed.
The state placed the city in fiscal emergency June 10, 2004, because of an operating deficit. The city began 2005 with a $301,000 deficit.
If Calex goes out of business, Dill said the city would lose about $75,000 annually in income tax.
"This would be devastating to the city," he said.
Council President Robert Yankle said the tax levy defeat and closing of Calex could mean the end of Campbell.
"If Calex goes, turn out the lights," he said. "We should start talking about merging with Coitsville or becoming East Youngstown."