By: Michael Lauzon
October 17, 2012
CLAYTON, MO. (UPDATED Oct. 17, 4:10 p.m. ET) — Spartech Corp. is closing a Canadian compounding operation and consolidating its production at three plants in the United States.
The company said Oct. 16 it will shut its Stratford, Ontario, facility in April, eliminating about 46 jobs. Over the next six months production of Stratford’s color and specialty compounds will shift to Donora, Pa.; Manitowoc, Wis.; and Cape Girardeau, Mo. Stratford now runs seven compounding lines, which Spartech will relocate, according to spokeswoman Christi Emmenegger.
Spartech currently runs nine color and compounding plants, including Stratford. Key markets for the plants are packaging, transportation, building and construction, leisure and recreation.
“We remain committed to growing our business in Canada,” said Tim Feast, senior vice president of Spartech Color & Specialty Compounds, in a news release. “It is important to note that only part of the output of our Stratford plant was for sale in Canada — the majority of production was destined for the U.S. market.”
“We had underutilized capacity within our plant network and it was prudent for us to take such actions in order to improve profitability,” Feast said.
Clayton-based Spartech will continue with a compounds commercial team in Canada headed by Adam Kempinski, national sales manager for Canada, who is based in London, Ontario
In spring of this year Spartech said it was closing one of its Canadian sheet plants and moving production to the other one. The Cornwall sheet plant is due to close by the end of January. A sheet plant in Granby, Quebec, will take up most of the production. Emmenegger said that plan is still in effect.
Spartech’s Color & Specialty Compounds business had sales of $229.6 million and an operating profit of $6.1 million for the nine months ended Aug. 4.
Editor's note: An earlier version of this story had incorrect sales and profit figures.