John Paulson, a billionaire hedge fund manager and one of Donald Trump's earliest Wall Street backers, is planning to offshore an Ohio manufacturing plant to China, despite heavy pushback from employees. This move has sparked outrage among workers, who feel betrayed by Paulson's decision, given his vocal support for domestic manufacturing.
According to Robert Hines, president of United Auto Workers (UAW) Local 2359, which represents the 150 employees at the plant, workers were informed of the closing when they first sat down to bargain over their new union contract last month. The company told them there would be no bargaining and the plant would be closing, citing poor productivity despite previous praise from company management.
The plant in question is owned by Conn Selmer, the largest US manufacturer of brass and orchestra instruments, and is located in Eastlake, Ohio. Workers at the plant have expressed their frustration and disappointment with the decision, with one worker stating, "It's a slap in our face," after Paulson's public defense of domestic manufacturing.
Background on John Paulson
Paulson made a significant portion of his wealth by betting against the housing market that crashed in 2008. A longtime Trump donor, he served on Trump's economic policy team during his first presidential campaign and raised $50.5m for the president at his Palm Beach home in April 2024. He was in the running to serve as secretary of treasury during Trump's second term but withdrew due to "complex financial obligations".
Paulson, like Trump, has publicly criticized offshoring, stating, "We can't have American producers closing American factories and offshoring. We need to protect American jobs and protect American manufacturing," during an interview with CNBC in September 2024. However, his decision to offshore the Ohio plant to China has been met with criticism from workers, who feel that his actions contradict his public statements.
Union's Response
The union has vowed to keep fighting to keep the plant open, with Hines noting that he hopes Trump will step in to stop the decision. In early February, the union held a rally in Eastlake, Ohio, as part of efforts to save the plant from closing, and also released a video featuring workers at the plant criticizing the proposal to shut down the plant.
Workers have expressed their emotional response to the decision, with one worker stating, "It really pisses me off," and another saying, "It leaves a hole in your heart." The union has also emphasized the impact that the plant's closure will have on the community, with Hines stating, "It's going to take a lot of money out of Eastlake."
Company's Response
A spokesperson for Conn Selmer did not comment on the criticisms from the union, though the company confirmed that if the "tentative decision is finalized", it will transfer some instrument production offshore. The company has stated that the plant's closure "will improve our competitiveness and better meet today's market demands", and that it remains "deeply committed to US manufacturing, as we have been for more than 150 years".
The White House did not respond to multiple requests for comment on the matter. As reported by The Guardian, this decision has sparked a heated debate about the impact of offshoring on American jobs and manufacturing.
