Bechtel will shut down island plant; closure to cost 300 manufacturing jobs. (PMB/Bechtel Inc.)

PMB/Bechtel Inc. plans to close its Pelican Island facility in July, but Galveston officials say they won't give UP the manufacturer without an effort.

Last week, company officials announced the division of San Francisco-based Bechtel Corp. would no longer accept contracts at the Galveston manufacturing facility and promised to help island officials sublease the property. However, the company will complete existing projects.

As part of the closure, Bechtel will lay off about 300 employees and the Port of Galveston expects to be out $700,000 in annual income.

"I was in shock," says Irwin "Buddy" Herz, chairman of the Galveston Economic Development Corp. "I'm …