CertainTeed Corp. is shuttering its extrusion facility in Grinnell, Iowa.
The plant, which employs 112, is one of nine extrusion locations for Valley Forge, Pa.-based CertainTeed, a diversified manufacturer of vinyl pipe, windows, siding and fencing.
``We made this decision after carefully considering our production capabilities, the uncertain economy and an increasingly competitive market,'' Chuck Campbell, president of CertainTeed's siding products group, said in a news release.
``The decision was difficult for us because of the people who are being affected. We will do what we can to help our employees in the outplacement process.''
Spokesman Bill Seiberlich said overall capacity won't be affected.
``Manufacturing of products that had been made at Grinnell is being shifted to Social Circle, Ga.,'' Seiberlich wrote in a Feb. 13 e-mail. ``The plant is expected to gradually phase out production by the middle of March, at which time most employees will be released. A few employees may be retained beyond that date to complete the orderly shutdown of the facility.''
Officials would not disclose how much equipment the facility has or the anticipated savings. CertainTeed extruded vinyl siding and windows at the plant, according to the firm's Web site.
Despite a strong housing market last year, the vinyl siding segment was flat, according to industry sources. The market reached maturity and firms began shedding excess capacity. In November, Pittsburgh-based Alcoa Building Products Inc. closed its Princeville, Ill., facility due to weakness in the manufactured housing sector. Remodeling was weaker than expected in the second half of 2001, according to the National Association of Home Builders' Remodeling Market Index.
Seiberlich said employees will be offered positions at plants in Clinton, Iowa, where the firm makes ventilation products; McPherson, Kan.; Jackson, Mich.; and the Social Circle location.
CertainTeed employs 7,200 in 40 plants across North America. The firm had $661 million in 2000 pipe and profile sales, according to the 2001 Plastics News ranking. CertainTeed is owned by Paris-based Cie. de Saint-Gobain.