Nearly 70 to be laid off in foundry shutdown

Hey there, time traveller!
This article was published 24/11/2020 (1941 days ago), so information in it may no longer be current.

A 104-year-old Selkirk foundry will be temporarily shut down early in the new year, another victim of challenging economic conditions brought on by the pandemic.

AMSCO Cast Products, which was acquired by Edmonton-based Black Cat Wear Parts in 2014, has had its order book cut down, forcing the gradual layoff of most of its 70 shop floor employees.

Mark Lloyd, the vice-president of manufacturing and the company’s senior Manitoba official, said all foundries in North America are challenged to compete in the world market these days.

While some employees have said they are uncertain as to whether or not the foundry is closing permanently, Lloyd said that is not the ownership’s intent.

“Unfortunately we have had to lay people off but we are not selling and we are not closing,” Lloyd said. “We are idling the facility until we can figure out a better business model.”

Also unfortunate for those laid-off workers — many with more than 15 years of experience with the company — Lloyd is not able to say when it will start back up again.

The foundry is on 22 acres with about 150,000 square feet of space. Black Cat owns two other, smaller industrial blade manufacturing operations in Selkirk including a 29,000-square-foot facility adjacent to the Gerdau Ameristeel steel mill, which makes large roadway graders among other things.

Lloyd said some of the foundry employees have been offered work at Black Cat’s other Selkirk plants. Employment at the other two plants total about 100.

Tony Sproule, the United Steelworkers area co-ordinator, said management has told the union that it does not intend to close permanently.

“I know they have laid off in groups, and the balance will go back after a Christmas shutdown to finish up some orders and get everything ready for downtime,” Sproule said. “If market conditions change they will probably open up sooner rather than later.”

But when that might be, Lloyd is not able to say at this time.

“It is a valid concern (the timing of the reopening),” he said. “No one can answer for them right now.”

The foundry makes heavy steel parts for the mining and railroad industry. Competition from overseas markets has put pressure on the North American foundry business for some time. Black Cat also owns a 55,000-square-foot production facility in China.

martin.cash@freepress.mb.ca