Half of Saint-Gobain land in Worcester transferred to nonprofit business group

December 10, 2022 : Worcester Telegram & Gazette, by Henry Schwan

WORCESTER — Materials manufacturer Saint-Gobain  transferred roughly half of its sprawling plant along Interstate 190 to  the nonprofit Worcester Business Development Corp., according to a  company release. 

Fifty-one acres of the  plant's approximately 100-plus acres were transferred at no cost in the  deal that closed Wednesday and involves underused and vacant buildings. This story has been corrected to reflect the terms of the sale.

The  release did not specifically state what will go on the 51 acres, other  than that it will be used for "commercial, industrial or manufacturing  purposes."

Completion of the project will depend on securing funds to finish site preparation, said a Saint-Gobain spokeswoman. 

For  several decades, the plant was known as Norton Co., started by a group  of entrepreneurs in 1895 manufacturing abrasives and grinding wheels. In  1962, the company went from a privately-held family business to a  publicly traded one. Saint-Gobain, a French multinational corporation,  bought Norton in 1990.

This latest transaction falls within Saint-Gobain's goal to make use of underused land at its Worcester plant. 

“For  the past several years, Saint-Gobain has explored opportunities to  develop the underutilized portions on our Greendale Campus,” Patrick  Dwyer, vice president for Saint-Gobain Abrasives North America, said in a  release. “Through our partnership with the Worcester Business  Development Corporation, we found the best solution that will ensure the  right sizing of our campus while also providing economic growth for the  city.”  

Financial terms
Financial  terms provided by a Saint-Gobain spokeswoman include Saint-Gobain  contributing $12 million for site preparation work for redevelopment. In  addition, New Garden Park Inc., a subsidiary of the WBDC, secured a $2  million forgivable loan from the Massachusetts Development Finance  Agency. 

A forgivable loan means the loan  balance is partially or totally forgiven if certain conditions are  met. The company did not comment on what those conditions are.

Beyond the $2 million loan, New Garden Park anticipates kicking in $1 million for site preparation. 

Private buyers considered
Saint-Gobain  considered private buyers for the land, but said it chose the WBDC  because of its track record in the Greendale neighborhood, where the  Worcester manufacturing facility is located. 

Its track record includes the Higgins Industrial Park, which is part of the WBDC’s Greendale Revitalization Initiative. 

Whatever  is built on the 51 acres, it will mesh with the industrial park and the  commercial corridor along West Boylston Street, according to a  Saint-Gobain spokeswoman.  

“This major  initiative is an exciting project for the Worcester Business Development  Corporation,” Craig Blais, WBDC president, said in a statement. “The  WBDC looks forward to assisting in the retention of Saint-Gobain in the  City of Worcester. 

“In addition, this project  plays an important role in the revitalization of this major industrial  area of the city. Lastly, and most importantly, the project offers the  WBDC the opportunity to turn an industrial site into a green, modern,  efficient development, enhancing the Greendale neighborhood and  supporting its residents.” 

A historic  opportunity is how Tim Murray, president of the Worcester Regional  Chamber of Commerce, described the land transfer in a prepared  statement.

"Today’s announcement that chamber  member Saint-Gobain is conveying 51 acres of underutilized parcels to  the Worcester Business Development Corporation (WBDC) represents a  historic economic development opportunity for the city of Worcester that  has the potential to bolster our manufacturing sector and significantly  strengthen the city’s commercial-industrial tax base while creating  hundreds if not thousands of new jobs for Worcester and Central Mass  residents."

'Elements' found
“Elements"  were discovered on parts of the 51 acres, consistent with what can be  anticipated on land that has been used for manufacturing for more than a  century, said a Saint-Gobain spokeswoman when asked if contaminants  were found on the site.

As the project advances, the WBDC will remediate the found materials in accordance with state requirements, Saint-Gobain said. 

With a 137-year history in the city, Saint-Gobain recently touted its completion of a $22 million piece of equipment called the “powerhouse” that will supply electricity to power its entire Worcester operation as proof of its long-term commitment to the city. 

The  powerhouse is expected to cut the plant’s carbon emissions in half as  Saint-Gobain works toward a carbon-neutral operation for its worldwide  operations by 2050. 

Through the first six  months of this year, Saint-Gobain posted $25.4 billion in sales (Euro), a  15.1% increase compared to the same period last year.  

The  Worcester operation has about 1,000 workers, the largest of the  company's manufacturing sites in North America, based on the number of  employees.