U. S. Gypsum at Heath, Montana.

              USG at Heath
By Brian Justice and Ken Byerly
Dec 1986
"I made the decision to close the U.S. Gypsum plant at Heath. It is irrevocable." David Rowe, the company's
regional vice president for Western operations, made this flat statement Monday afternoon when Blaine Cum­mins,
president of the Lewistown Area Chamber of Commerce, called him in Los Angeles. Despite what
appears to be insurmountable odds against them, the Chamber of Commerce and New Industries, Inc., Gary
Willis, president, have joined hands in a last-ditch effort to keep the plant open. Willis also talked to Rowe,
and asked if Montana's business climate was a factor in the closure. Rowe said that Montana's (mineral)
extraction tax has hurt the operation, but was not the major factor in the decision. He pointed instead to
distance from markets, high transportation costs, and the fact that the Heath plant is "out-dated."
The Gypsum Company executive told Willis that no attempt has been made to sell the plant, but that they
"may look around later" to see if there is a market for the gypsum under the ground at Heath.
The offices of Senators John Melcher and Max Baucus, Congressman Ron Marlenee and Governor Ted
Schwinden have all been contacted by representatives of the two local organizations with the help that the
four elected officials will talk with R.J. Day, chairman, president and chief executive officer of U.S. Gypsum Co.
in Chicago. All indicated that this would be done.
State Senator Bob Williams has also asked the Montana Department of Commerce for help.
Rowe's reasons for closing the Heath plant were confirmed and enlarged on by Paul Colitti, USG's public
relations executive in Chicago, when called by the Lewistown News-Argus.
Highlights of his comments:
- "The plant had to be closed because of economic disadvantages. The decision was not an overnight one."
- "The problem is that wall board is a heavy product and freight charges are high. The major markets are in
the Northwest, and competitors are opening and expanding operations that are closer to them. We may have
to ship 800 miles while other plants are closer."
- "The Heath plant's small size is a major disadvantage. Plants in the South have 10 times the output of that
at Heath." Colitti feels strongly that the Heath plant will never be reopened. "We were trying to make it more
productive, he said, "but just couldn't considering its size and the distance from market."
Asked if there would be relocation of Heath plant's 40 employees to other USG ones, Colitti said, "I don't think
there will be much of that. It just wouldn't be feasible." However, Jeff Russart, acting plant manager at Heath,
said that counciling sessions will be offered the terminating employees to help them make resumes and give
advice on finding other jobs.
There will be limited operations at the Heath plant until Mayor June. Unconfirmed rumors are that the plant
will then be dismantled with all useable equipment being shipped to other USG plants. It also seems probable
that USG may see if markets can be found for its gypsum that is still under the ground at Heath.
Terry Uren, manager of manufacturing for USG's Western construction products division, emphasized that
closing of the Heath plant "is not a reflection on the employees" who work there. "They have done an
outstanding job over the years. Their performance is the primary reason that the plant continued to operate
over the years in the face of strong competitive pressure," he said. Uren was in Lewistown recently and talked
with plant personnel.
Fergus County will lose $94,635 in property taxes because of the demise of the plant at Heath. The biggest im­pact
will be felt by the School District NO.1 as it will lose $52,302.