Indalex rejects sale of plant to workers

The Girard plant, which employed 280 before
layoffs, will close by the end of March.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

GIRARD — Indalex Aluminum Solutions has refused to sell its Girard plant to workers and will close the plant.

The company said it expects the plant to be shut down by the end of March, which will eliminate 150 jobs. The company had laid off 130 other workers last year.

Indalex, a Chicago-based aluminum extrusion company, previously said it was likely to close the Girard plant because of a downturn in the housing market but added that it would consult with the union first.

In those meetings, the company expressed a desire to sell the plant, so United Steelworkers of America Local 4564 offered to explore an employee buyout, said Kirk Davies, a union representative.

He said the company declined to consider the request, saying it was concerned about antitrust issues and whether a noncompete agreement with the employee-owned plant would be enforceable.

Indalex called the union’s offer a “surface proposal” and added that continued operation of the plant doesn’t make sense.

“Unfortunately, market conditions in the building and construction sector will not support the continuing operation of the plant,” said Tim Stubbs, company president and chief executive. “We do not expect the market to improve in the near future.”

Also, company officials met with state and local officials earlier this week to discuss the future of the plant. Indalex said government officials expressed a desire to help keep the plant open, but company officials added that government help would not solve the problem facing the plant.

Davies said government officials offered a variety of loan and grant packages.

Indalex said it doesn’t need as much extrusion capacity because of the downturn in the residential construction market. The plant produces aluminum extrusions that are used to make window and door frames.

Indalex has said that the Girard plant is the oldest and least efficient of its four plants that serve the building and construction industry. The others are in Montreal; Toronto; and Gainesville, Ga. Production from Girard will be sent to these other plants.

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.

Company officials and union leaders from the Girard plant will meet later this month to talk about severance pay and other issues related to the closing.

shilling@vindy.com