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Indalex plant likely to close(Vindicator (Youngstown, OH) (KRT) Via Thomson Dialog NewsEdge) Dec. 19--GIRARD -- Indalex Aluminum Solutions said it is likely to close its Girard plant because of a slowdown in new home construction nationwide. There simply isn't enough demand for the window and door frames that are produced from the company's aluminum extrusions, said Scott Langdon, a spokesman for the Chicago-based company. About 300 workers would lose their jobs, starting in February, if the plant is closed. Indalex said it will decide the plant's fate by the end of January. Mayor James Melfi said workers pay $300,000 in city income tax, which is 9 percent of the city's collection. Melfi said he thinks the city can maintain its current service levels and not cut workers if the plant closes. He added, however, that improvements that city officials were discussing would have to be scrapped. Cautious spending in the past six years has allowed the city to turn a $2.45 million deficit into a $300,000 surplus, Melfi said. Though Indalex left open the possibility that the plant can be saved, no one involved seemed optimistic. Langdon said Indalex notified the United Steelworkers of America, which represents hourly workers, that it is willing to meet with union leaders before making a decision. The two sides are to meet early next month. Kirk Davies, a union representative, said he's frustrated because he can't prepare for the meeting. Company officials have said they aren't looking for economic concessions from the union but won't say what they would need to keep the plant open, he said. Langdon said the company just wants to be available if the union wants to talk about the potential closing. "It's not about the wages. It's about the market," he said. Home construction in November was down 24 percent from a year ago, the federal government said Tuesday. Single-family home construction has dropped to its lowest level in 16 years. It was a much different story in 2003. The economy was much better then, and Indalex was investing $2 million to upgrade plant equipment so it could continue to meet the demand for its extrusions. Now, the Girard plant is in line to be closed because it is the oldest and least efficient of the four Indalex plants that produce extrusions for the building and construction industry, Langdon said. The other plants are in Toronto, Montreal and Gainesville, Ga. Nearly half of the plant's hourly workers already are laid off. The plant laid off 45 workers in August when an extrusion press was shut down because of a mechanical problem. In October, 85 more workers were idled. Indalex also operates a plant in Niles that employs 80. It isn't affected by the closing announcement because it produces extrusions for the transportation industry. To see more of the Vindicator, or to subscribe to the newspaper, go to http://www.vindy.com. Copyright (c) 2007, Vindicator, Youngstown, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |