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

Henry Schwan, Worcester Telegram & Gazette

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.