Bad news for the city of Green today as Diebold announced it was cancelling plans to build a new $100-million world headquarters in the city. Diebold says it will instead focus its financial resources on long-term sustainable growth.
Initial plans called for the new headquarters to be built on 55 acres of land near the intersection of Massillon Road and Town Park Boulevard.
The city of Green's Communications Coordinator Valerie Wolford tells AkronNewsNow "Of course we're dissapointedthey're not building the new facility, but we're very pleased that they're staying in Green. Diebold executives were very quick to assure Mayor Norton when they let him know, that Diebold does not have any plans to leave Green."
Diebold , the largest employer in the city of Green, has 1,800 employees at its current global headquarters on Mayfair Road
News Release from Diebold Incorporated
Diebold, Incorporated (NYSE:DBD) is suspending indefinitely its plans to construct a new global headquarters facility. The company is instead focusing its resources and strategic direction on generating long-term, sustainable growth, using its assets to capitalize on acquisitive opportunities and invest in technologies and services that will help grow the business.
The company has no plans to pursue new construction options for its global headquarters facility, either in Ohio or elsewhere, and is committed to remaining in its current location in Green, Ohio. Diebold will decline the various state and local financial incentives it was previously offered, thus allowing those assets to be redirected to other programs that will benefit our state and region.
“As we’ve been analyzing our near- and long-term growth priorities, it has become clear that investing more than $100 million in a headquarters facility is not economically feasible given the other priorities for the business at this time,” said Thomas W. Swidarski, Diebold president and chief executive officer. “We have tremendous opportunities for growth, both through acquisition and organic means,” Swidarski continued. “Therefore, we must ensure that we maintain adequate capital flexibility to take advantage of these prospects that will position us for long-term growth.”
The recently announced acquisitions of logical security and services businesses in Brazil and Turkey, as well as needed spending on IT and services infrastructure, software and global shared services, represent the kinds of investments Diebold is making to grow the company and build a solid foundation for the future.
During the next several years, Diebold will make investments to update and enhance the company’s existing corporate headquarters in Green and other facilities it occupies in the surrounding area to create a more sustainable, satisfying work environment for its associates. “We remain firmly committed to our associates, our community and the State of Ohio,” Swidarski added. “We will appropriately spend on our current headquarters in the City of Green and our other Northeast Ohio facilities. Our intent is to solidify our presence in this region as we invest in growing our business globally – and continue to make a significant economic contribution to the state.”
On April 12, 2011, Diebold announced its plans to construct a new, consolidated corporate campus which would form an expanded global headquarters in the Akron/Canton region. In January 2012, the company announced that it chose a 55-acre site on the Union Square property in Green as its preferred site. Diebold currently employs approximately 2,000 associates in Northeast Ohio with an annual payroll of about $130 million. The company maintains seven facilities in the Akron/Canton region.
“We greatly appreciate the tremendous support from the State of Ohio, the City of Green and other key partners we engaged throughout this process,” Swidarski concluded. “Also, I deeply regret that our plans raised the hopes and expectations of our associates and the community. However, I believe this decision is in the best interests of our company, our associates, our shareholders and the long-term growth prospects of our business.”
News Release from The City Of Green
Last evening, Diebold executives met with Mayor Dick Norton to announce they would be indefinitely suspend plans to build a new world headquarters in Green. “Diebold executives were quick to reassure me that they intend to stay in Green in their current headquarters and that they will invest some amount of money into the current facility to accommodate their near term needs,” said Dick Norton, mayor.
Diebold’s current world headquarters is located at 5995 Mayfair Road.
“It’s good news bad news – there will be no negative impact to the revenue the City receives from Diebold. Executives have reassured me that their employee base will remain the same and that in fact they are currently in a hiring mode for certain disciplines.”
Diebold is the largest employer in the City of Green with approximately 1,800 employees.
“Clearly I would have preferred to have the new facility,” said Norton. “On the other hand, I can certainly respect their position to make this tough decision to delay the project and to invest in growing the business.”
“At this time, the City is stopping all expenditures of funds related to construction of any infrastructure related to accommodate the new facility.”