Leominster manufacturing firm launches Employee Stock Ownership Plan
Image | Courtesy of Process Cooling Systems
Process Cooling Systems employees at the company's 2023 holiday celebration.
Process Cooling Systems Inc., a Leominster-based provider of manufacturing-related water systems, is the latest Massachusetts company to give their employees a stake in the business that they work for.
The firm’s existing shareholders will transfer 49% of the company’s shares to an Employee Stock Ownership Plan, according to a press release issued by the company on Friday. Process Cooling Systems made the surprise announcement during the company’s annual holiday party held the same day.
“Our employees are the foundation of our success,” Ted Rudy, president of Process Cooling Systems, said in the release. “What better way to demonstrate our gratitude to our employees for their commitment to our shared success, than to provide them with stock ownership.”
Founded in 1963, Process Cooling Systems opened a new corporate office and manufacturing facility in Leominster in 2019. The company specializes in systems that remove unwanted heat from manufacturing processes. Originally focusing on plastics manufacturers, Process Cooling Systems has since expanded to also work with the metal treating, chemical, and food processing industries.
ESOPs have been growing in popularity as an alternative to 401(k) retirement plans, based on the rationale that giving employees a stake in the company will increase their productivity and commitment. Approximately 6,500 U.S. companies currently sponsor an ESOP, according to the National Center for Employee Ownership, a California-based nonprofit that tracks data regarding employee-owned businesses.
In addition to Process Cooling Systems, other Massachusetts-based companies have also announced the launching of Employee Stock Ownership Plans in 2023. Norwell-based Sullivan Tire & Auto Service announced in November that they would be launching an employee ownership plan. Theory Wellness, a Bridgewater-based cannabis grower and retailer, announced a similar plan in December.
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