Prosecutor: Maytag owes taxes

Prosecutor: Maytag owes taxes
Date August 17, 2004
Section(s) Local News
GALESBURG, Ill. (AP and NDN Staff) — The Knox County state’s attorney plans to sue Maytag Corp., which is closing its refrigeration plant here, for $1 million in real estate property taxes, his office announced Monday.

State’s Attorney Paul Mangieri has scheduled an 11 a.m. Tuesday press conference about the taxes, which he says the company owes, Mangieri’s office said in a statement.

“No contact was made with any representative of Maytag‘s Galesberg facility or Maytag Corporation prior to a press release being issued by the state’s attorney announcing today’s press conference,” said Maytag spokesperson Lynne Dragomier. “We cannot comment on the specifics of the issue until we receive information about the state’s concerns.”

Maytag announced in October 2002 that all 1,600 employees at the refrigeration products plant would lose their jobs by the end of 2004.

“When we announced in October of 2002 the planned closing of the Galesberg refrigeration plant, we repaid immediately in full all loans from the state and city well before the loans matured,” Dragomier said. “This is the first we have heard of an issue around repayment of abated taxes and we are eager to hear from the state’s attorney to understand the situation.”

Company officials said production will move to Amana, Iowa, and a plant will open this fall in Reynosa, Mexico.

About 380 workers at the Galesburg plant have already been laid off, and last month a required 60-day termination notice went out to 875 full-time production workers. They will be out of a job in mid-September.

About 200 employees will continue working until their jobs are phased out by February 2005, officials have said.


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