Lubrizol to shut Niagara Falls site in 2009
Cleveland, Ohio-based Lubrizol Corporation has announced its decision to close its Niagara Falls, Ont.-based facili...
Cleveland, Ohio-based Lubrizol Corporation has announced its decision to close its Niagara Falls, Ont.-based facility. The Lubrizol Additives blending, packaging and warehouse site will be divested after the company reviewed its operations.
The company determined that the operation of the facility is not sustainable for the long-term, given current and anticipated market conditions. Operations at the facility are expected to end by the end of June 2009.
The Niagara Falls site has been in operation since 1953, and was established to serve the Canadian market as an additive blending, warehousing and bulk terminal operation. The facility underwent several restructuring activities in the early 90s, and currently focuses on toll blending, packaging bulk storage and warehousing of materials.
Management decided that a shutdown was necessary because the facility’s current and projected toll processing volumes are at historical lows. Additionally, the cost structure is too high for current and anticipated business volumes.
“We are acting now to improve our operational efficiency and effectiveness, given the changing market trends we are facing, as we continue to build a stronger organization for the future,” said Larry Norwood, Lubrizol Additives vice president of operations. “We will work closely with affected customers to ensure minimal disruption to their businesses.”
The site employs about 30 people, all of whom have been notified about the closure. Some employees will be offered new positions within the company, while others will be offered a severance package.
“Our Niagara Falls employees have worked hard to keep the site viable in the face of numerous market challenges, and this decision in no way reflects the quality of their work,” said Norwood.
The company said it would seek a potential buyer for the site over the coming months. The plant closure will result in restructuring charges of approximately $10.9 million.
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