Georgia Gulf Corp. will close two of Royal Group Inc.'s Canadian plants and transfer part of the capacity to more technologically advanced facilities to trim Royal's fat and eliminate debt.
Officials plan to shut down the cellular PVC trim extrusion plant and the patio door fabrication plant in Woodbridge, Ontario, where Royal is based. Both are leased facilities. The closures will be completed sometime in the first quarter, said Royal spokesman Mark Badger in an Oct. 3 telephone interview.
Royal will consolidate the cellular PVC trim operations into its extrusion facility in Marion, Va. The company will transfer some of its patio door fabrication into a similar plant in Montreal.
The plants combined employ 145 workers; some of them will be transferred to other sites, Badger said.
``It's certainly true that Royal Group has begun a footprint optimization,'' Badger said. ``It's also true that since the acquisition of Royal Group by Georgia Gulf,'' the consolidation ``has moved swiftly.''
``We're retaining the plants we have in the group that have the most advanced technology, and the ones situated in those locations to serve not only our existing customer base, but also prospects that we have for new customers.''
Georgia Gulf, an Atlanta-based resin and aromatic chemicals maker, is in the midst of an aggressive plan that includes offloading $233 million worth of noncore and inefficient Royal Group business by the end of 2008.
Georgia Gulf announced in August its plans to shut down its window and door profile extrusion plant in Winnipeg, Manitoba, though the company did add 250,000 square feet to Royal's extrusion plant in Bristol, Tenn.
Last October, Royal shut down plants in Houston and Coral Springs, Fla., that made parts for its former window coverings business, which was sold in a management buyout and now operates as Plastibec Inc. in Boisbriand, Quebec.
Georgia Gulf also has announced plans to sell its Royal Building Systems operations in Shanghai, and two plants in Mexico. Royal Building Systems manufactures PVC-cement composite wall panels, as well as roofing products, doors, windows, siding, and gutter and patio accessories.