EAST LIVERPOOL – Announcement that American Pioneer Manufacturing in New Waterford was closing came as a surprise to the owner of a downtown pottery.

“I found out on Friday afternoon, and it was like someone punched me in the stomach,” according to Clyde McClellan, owner of American Mug and Stein on Dresden Avenue.

McClellan said as soon as he heard, he called American Pioneer founder and CEO Ulrich Honighausen and they met to discuss the closing of the restored Silliman Street ceramics plant.

“Ulrich has been fighting for us three years to maintain a level of business and increase it. Nobody is happy about something like this,” McClellan said.

The two men became acquainted in 2012 when Honighausen contacted McClellan about the possibility of his small pottery here producing ware for Starbucks, and what resulted was a lucrative contract that has allowed the once-faltering company to continue operating, even increasing its workforce.

“This guy went out and found me. He brought the biggest user of coffee cups to this little operation. That’s what kept us in business and helped my business grow. He is a great salesman,” McClellan said.

He emphasized that, while he is not completely certain what caused Honighausen’s decision to close the New Waterford enterprise, “It was not for lack of effort that it wasn’t successful.”

During his talk with Honighausen following the announcement last week, McClellan said, “We were looking at all options (for keeping it open). We wondered could I pick it up? But I can’t do the volume Starbucks wants.”

According to McClellan, Starbucks represented 95 percent of American Pioneer’s business and he said Honighausen and his wife had made a “huge financial commitment” to the business.

While the two men have been associated through their respective Starbucks contracts, McClellan said there are no plans to close American Mug and Stein.

McClellan explained that, while American Pioneer produced large orders for Starbucks, American Mug and Stein sells to just one Starbucks store, Pike Place in Seattle.

Starbucks provides his company with steady orders and, recognizing the small pottery’s limitations, gives it “a lot of lead time” to complete orders.

McClellan said he is currently working on two orders for Starbucks, including the original mug design and a new shape to be sold at Pike Place.

The new shape could create some additional jobs, although McClellan is currently uncertain how many.

Honighausen was quoted in news reports last week as saying he had found it “very hard to find people with skills,” but McClellan said he found it difficult to believe the CEO uttered that statement, again referring to their conversation following announcement of the closing.

“He was upset. He felt he was letting his employees down. Our conversation was about how good his employees were. They were doing everything he wanted and more. (That statement) was the exact opposite of what he told me and has told other people,” McClellan said.

In fact, McClellan talked to Honighausen’s employees and told them if anyone wants to apply at American Mug and Stein, he will give them first consideration for any new openings. Thus far, three have applied for employment.