May 15, 2024
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Cardinal Health plant in Crystal Lake to be taken over by new manufacturer

Change in operation will mean layoffs originally thought to take place next year will not happen, city officials say

By James T. Norman
Employees arrive and exit Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planned to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs.

Employees arrive and exit Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planned to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs. (Gregory Shaver — gshaver@shawmedia.com/Gregory Shaver for Shaw Media )

Cardinal Health will be shutting down operations at its Crystal Lake plant and leasing out the building to another manufacturing company, city of Crystal Lake officials said.

The name of the company taking over was not confirmed, but the change is expected to have no impact on the status of the facility’s employees, Crystal Lake Director of Community Development Katie Cowlin said.

The development comes more than six months after it was confirmed that Cardinal Health was planning to shut the facility down by mid-2023, leading to possible layoffs for its workers.

Spokesperson Erich Timmerman said in April that the company would be providing benefits and outplacement services to support them in the transition. Timmerman did not respond to requests for comment on Tuesday about the lease.

“We continually adapt our business to meet the changing needs of our industry,” Timmerman said in an email in April.

Crystal Lake Mayor Haig Haleblian said the change was “just great news.” He said the owners of the new company visited Crystal Lake and did a tour, adding they “liked the community a lot.”

“It was really distressing that [Cardinal Health] was going to pull out,” he said. “It’s nice to know that someone has decided that the facility is one that certainly can add to their portfolio and add to their business.”

Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planed to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs.

Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planned to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs. (Gregory Shaver — gshaver@shawmedia.com/Gregory Shaver for Shaw Media )

A Worker Adjustment and Retraining Notice report published Thursday by the Illinois Department of Commerce and Economic Opportunity states 236 people at the plant are set to be laid off starting Dec. 31. Cowlin said in a statement on Tuesday that the taking over of the building will result in no change to employment.

Haleblian confirmed, adding that he’s happy those workers will continue being employed in Crystal Lake.

“There’s 230 people that live here, shop here, dine here, buy their fuel here,” he said.

Currently, one job opening is listed on Cardinal Health’s website for a senior electrical technician, which was posted on Oct. 19.

The building itself, at 815 Tek Drive, is owned by KPR US LLC, which shares the same business address as Cardinal Health’s headquarters in Ohio, according to state of Florida incorporation records.

Cardinal Health manufactures health care products, including pharmaceuticals and medical and laboratory products, according to its website. It also offers various health care services to hospitals and clinics. Headquartered in Dublin, Ohio, the company operates in more than 30 countries with about 44,000 employees worldwide, according to its website.

“The positive update from Cardinal Health is exciting for our community and the City looks forward to continuing to work with Cardinal as they work through the transition and welcomes the new manufacturer to Crystal Lake,” Cowlin said in an email on Tuesday.

Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planed to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs.

Cardinal Health on Tuesday Nov. 1, 2022. The company filed a Worker Adjustment and Retraining Notification, or WARN, Act notice that it planned to lay off 236 people at the facility at 815 Tek Drive in Crystal Lake starting Dec. 31, but city officials said a lease with a new company should save those jobs. (Gregory Shaver — gshaver@shawmedia.com/Gregory Shaver for Shaw Media )