Optical Disc Solutions closing in Richmond

The CD and DVD in Richmond has gone the way of the lawnmower, auto car and farm machinery in the city's past.

They no longer will be manufactured here.

Fred Austerman, owner of Optical Disc Solutions Inc., said this week he has sold his company to WTS Media of Chattanooga, Tenn., in a deal that was completed Wednesday.

Optical Disc Solutions manufactured and packaged CDs and DVDs. The company will close its doors for good by the end of June, idling 38 local workers.

Austerman did not disclose the terms of the sale but said WTS Media has established an office in Richmond, manned by ODS employees, "to allow a seamless transition for customers."

"It's very nostalgic right now because we have been here for 27 years and a lot of our employees and our customers have been with us since Day One," Austerman said.

"But the industry has changed," he said. "Everybody knows that. It has gotten smaller and smaller over the years. You see all the (online video and audio) streaming that goes on."

Austerman was chief financial officer at Sanyo Laser Products at 1767 Sheridan St. in April 2005 when company officials planned to close its doors and idle 114 workers.

He had worked there since the company's opening in Richmond in 1987 as had many of his co-workers.

So Austerman bought the business.

"I bought the company and kept everybody working. It was the right thing to do," he said.

Optical Disc Solutions thrived for a time. In September 2008, the city of Richmond approved a 10-year tax abatement on $760,000 worth of equipment. On the abatement form, company officials listed 133 employees and plans to add two more with the expansion.

But times quickly changed as the demand for CDs and DVDs faltered. Attrition claimed many workers.

Now all of the production capabilities will be transferred to WTS Media's Chattanooga facility. Some of ODS' employees have been offered jobs in Tennessee, but Austerman added, the Chattanooga company still is evaluating how many Richmond employees it might need.

"It's sad because it is the end of an era in our community," said Valerie Shaffer, president of the Economic Development Corporation of Wayne County.

"Trying to remain positive, I think this means that we have potentially 38 good, quality workers who will have the opportunity to start another career," Shaffer said.

"There are many employers hiring right now, so the opportunities are great," she said.

Austerman said he will "have some responsibilities" with the Tennessee company but will not be an employee.

"My part is to make sure there is a smooth transition," he said. "Most of our employees have been with us for over 25 years. They have been dedicated to making quality products and providing great customer service.

"It has been a privilege working with them all those years," Austerman said.

ODS carried on a legacy in Richmond that included Sanyo and Cinram, a manufacturer and packager of CDs and CD-ROMs.

Cinram bought the former Phillips Recording Company in 1990 when Phillips, then called PRC Tape Co., filed for bankruptcy. PRC Tape employed 450 people when Cinram bought it.

Cinram employed 330 people when it closed its doors in 2009.

PRC had direct links to Decca Records and Gennett Records in Richmond, which recorded and manufactured records in the city starting in 1915.

"That's 99 years of recording and production. It's interesting too think of it that way," Austerman said. "It certainly is the end of an era."

Staff writer Bill Engle: (765) 973-4481 or bengle@pal-item.com. Follow him on Twitter at http://twitter.com/billengle_PI.