Chemical Plant Closures in U.S., Canada Down in 2012 from Previous Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info has identified 27 permanent plant closures in the Chemical Processing Industry (CPI) that took place in 2012 in the U.S. and Canada. These closures affected an estimated 1,268 jobs, which is down from 2011, when 41 plant closures that affected an estimated 2,060 jobs were identified. Industrial Info anticipates discovering more 2012 plant closures, although expectations are that any additions will be minimal.

Several of the plant closures were a result of companies consolidating multiple plant locations. Blue Star Silicones USA Corporation (East Brunswick, New Jersey) opened a new integrated silicone manufacturing and research and development facility in June 2012 in York, South Carolina. Blue Star Silicones closed its plants in Rock Hill, South Carolina, and Ventura, California, and relocated production to the new site. Also, Dober Chemical Company (Woodridge, Illinois) closed its site in Midlothian, Illinois, which had 150 employees, and relocated production of water treatment chemicals to its facility in Glenwood, Illinois. Along the same lines, X L Brands LLC (Dalton, Georgia) opened a new adhesives manufacturing facility in July 2012 in Dalton, Georgia, to accommodate for future growth, which prompted the company to close its older Resaca, Georgia, location that opened around 1972.

The Southeast region of the U.S. had the highest number of closures, with six plants and 206 jobs, while the Great Lakes region had five plant closures with a total of 482 jobs. Closely following is the West Coast region, with four plant closures affecting 79 jobs, and the Northeast region, with three plants and 159 jobs. These regions are home to an already small number of CPI plants closing their doors, proving especially troublesome for the industry.

Over the course of 2012, the adhesives and sealants (SIC Code 2891) segment was affected the most, with eight plant closures. The chemical preparations segment (SIC code 2899) and the industrial gases segment (SIC code 2813) followed with three closures each.

As we enter 2013, Industrial Info already has identified 16 planned plant closures for the year. H.B. Fuller Company (NYSE:FUL) (Saint Paul, Minnesota) is expected to close four plants in an effort to downsize, after recently acquiring the manufacturing plants from Forbo Group (Hazleton, Pennsylvania).

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.