Nova Bus to close

Jun. 21—PLATTSBURGH — In shocking news, Nova Bus, a leading employer in the region, said it will be ending bus production in the U.S. market and will close its Plattsburgh plant by 2025.

"The strategic decision to end bus production in the U.S. by 2025 was made after evaluating its profitability, which was experiencing continued financial losses over the years," Anna Westerberg, chair of the Nova Bus Board of Directors, said.

Nova Bus has operated a plant in the Town of Plattsburgh on Banker Road since 2009. It employed hundreds, producing several different models of buses for transportation systems across the country and world.

Production in North America will be focused on its Canadian facilities located in Saint-Eustache and Saint-François-du-Lac (Quebec) and Nova Bus will continue its successful Canadian business, where it is the market leader, the company said.

"Nova Bus will work closely with employees, customers, and suppliers as bus operations in the Plattsburgh facility are planned to continue until the first quarter of 2025. Nova Bus will continue to support its U.S. customers' parts and service needs," a statement said.

"Although this strategic decision is a difficult one, by changing our business model with a focus on Canada, we will improve profitability and secure our long-term competitiveness," Ralph Acs, President of Nova Bus, said.

The announcement was shocking for local officials.

"Stunned. Totally surprised. Profoundly sad. These words all describe our reaction to news that Nova Bus has decided to leave the U.S. market," Garry Douglas, president of the North Country Chamber of Commerce, said.

"We have come far with Nova Bus and were anticipating exciting times ahead with the national transition to electric buses. Volvo's decision comes as an unhappy surprise. But it has been made clear that it is not due to any missing support from the community or state, and there is no question whatsoever that the North Country workforce is among the best to be found anywhere.

"One thing our area is used to is the unexpected loss of things we thought were secure, from Plattsburgh Air Force Base to Pfizer to now Nova Bus. It is one reason the area's economic development partners have worked for 20-plus years to create a diverse manufacturing base."

Douglas said that the transition period is also welcome with full workforce retention for a substantial period to complete all existing contracts and with continued growth expected by many other manufacturers.

"We are already in touch with the Governor, Empire State Development, and our federal and state representatives and will be joining with them, with our other economic development colleagues, and with Volvo to develop and support plans and strategies for the future," Douglas said.

"The unexpected departure of such a strategic partner and employer is profoundly sad, but work towards future opportunities begins today. In fact, we have already convened our key local and state economic development partners for a first conversation about coordination and next steps."

Clinton County Legislature Chairman Mark Henry (R-Area 3, Chazy) said work on how to deal with the impact of losing such a strong company began almost immediately after learning of the pending closure Tuesday afternoon.

"What a body blow to the area," Henry said.

"But we started today working on the future because this will affect a lot of people," Henry said.

Henry said the concern is also for the local companies that supply Nova Bus with parts and how the closure will affect them as well.

"We are working at all levels of government, with the chamber, the Town of Plattsburgh, The Development Corp... to see what we can do," he said.

"Economic development is important and we always have to keep working at it, and hopefully we will come out of this bigger and better."

Town of Plattsburgh Supervisor Michael Cashman, whose office is a short distance from the Nova Bus plant, was also shocked.

"We join the chamber in our shock. For nearly 14 years, NOVA has been building a premier product right here in the Town of Plattsburgh, by our talented and dynamic workforce. Any company would be lucky to hire such individuals," Cashman said.

"While we are disappointed to see them go, I am confident that the future is bright with new opportunities on the horizon. The North Country is resilient. The Town of Plattsburgh will continue to provide support through this transition and their anticipated closure in 2025. We already actively working in partnership with our local, regional, and state leaders."

State Assemblyman D. Billy Jones (D-Chateaugay Lake) said the news was devastating for the North Country and the more than 350 people who work at Nova Bus.

"Between the ancillary companies and the transportation manufacturing hub, there is truly no doubt that this will have a huge impact on our communities and our region. While this does come as a shock, Nova Bus will not close their operations in Plattsburgh for at least 18 months, allowing employees and ancillary companies to plan," Jones said.

"This is heartbreaking news, but the North Country has tremendous heart and has persevered through similar circumstances when the Plattsburgh Air Force Base and Pfizer closed. I have had many conversations with company officials, the North Country Chamber of Commerce, economic development partners and other state leaders, as well as local leaders on how to best move forward and I will continue to work with these leaders to create a path that will support our community through this transition."

State Sen. Dan Stec (R-Queensbury) said that although he did not know specifics about why Nova Bus decided to pull out of the region, the state needs to make sure it is as business-friendly as it can be.

"We need to do everything we can to help these people (Nova Bus employees) and we need to find ways to grow our economy," Stec said.

"We need to look at losses like this and ask ourselves what we can do to avoid the next one. We can't take anything for granted, and we can't assume that our larger employers will be here forever."

Nova Bus has been a flagship company of the region's transportation hub, a hub that employs about 9,000 people.

The company said it would do what it could to help employees.

"We will do the utmost to support our employees, many of whom have been employed for numerous years. We will work together with our sister Volvo companies, surrounding businesses, local authorities, and communities to support our people in finding new employment opportunities," Acs said.

The extent of the impact this decision will have on the Canadian organizational structure remains under analysis by Nova Bus and will continue to be defined as the restructuring takes place over the next 24 months.

E-mail: jlotemplio@pressrepublican.com

Twitter: @jlotemplio