Dozens of people are losing their jobs, as General Electric announces it's ending its battery manufacturing business in Schenectady.
This comes just three years after GE opened the facility.
The company released a statement Friday saying it is stopping Durathon battery manufacturing and engineering operations at the location. A company spokesperson says it is not cost effective to manufacture compared to other battery technologies.
"In (research and development) there can be success and failure," said U.S. Rep. Paul Tonko. "It's seen a down payment for success. The tragic situation is that it's distressing and discouraging, but most importantly it's painful for individual workers and families associated with the downturn."
Employees were given 90-day notifications on Thursday. Thirty-four salaried positions will be eliminated, and 45 hourly employees will have the option of transferring within the company.
It was back in 2011 that President Barack Obama, in front of hundreds at the Schenectady plant, praised the $170 million dollar operation that broke ground in 2010, and was backed by the need of 450 jobs.
Now that need is no more, the company citing the evolving industry, in part saying, "Though Durathon battery technology is well-suited for certain applications, today it is just not cost-effective enough to manufacture at a competitive price point compared to other battery technologies. We will continue supporting our customers and servicing the current Durathon installed base."
Chuck Steiner, president of the Capital Region Chamber of Commerce, says it doesn't mean their whole operation is shutting down. He says it's just a bump in the road, and people should be lucky the company is still around and in business.
"There will be 100 people still remaining there," Steiner said. "There is a battery type facility business; it's just not being manufactured here in Schenectady."