CertainTeed Corp. will close two vinyl siding operations in the spring, continuing a trend of capacity rationalization within the industry.
About 325 workers will lose their jobs between the two facilities.
The CertainTeed siding operation in Social Circle, Ga., is scheduled for a May 2 closing. The plant will remain open, however, and continue to manufacture cellular PVC restoration millwork and trim products.
The Valley Forge, Pa.-based company plans to shut down its plant in London, Ontario, on March 30.
Look no further than the home- building industry for the reason.
``Vinyl siding is largely tied to new construction,'' said Tom Smith, vice president and general manager of CertainTeed's Siding Products Group, in a Dec. 11 telephone interview. ``If it plummets, so does vinyl siding. The market's gone to hell in a handbasket.''
Smith said the two plants were chosen because they are less efficient, costwise, than others in the CertainTeed portfolio.
``In order to be effective, you need facilities close to the marketplace, you need to be well-loaded, you need operational efficiencies, overhead efficiencies and freight efficiencies,'' he said.
The London facility, which produces Vytec-brand siding, was acquired when Paris-based Cie. de Saint-Gobain signed a $371 million deal to acquire Toledo, Ohio-based Owens Corning's siding and distribution business, Norandex/Reynolds.
Most of the siding produced in London is shipped to the United States. Also, most of the raw materials used to make the siding squares was shipped from the U.S. Shipping costs, both upstream and downstream, were a major factor in the decision to shutter the Vytec plant.
CertainTeed will redistribute some of the extrusion lines to the other plants.
Company officials have not decided what to do with the building in London, he said.
In addition to London and Social Circle, CertainTeed has vinyl siding product plants in Jackson, Mich.; Hagerstown, Md.; Joplin, Mo.; and Claremont, N.C. The company also operates an injection molded polymer shingle plant in McPherson, Kan.
Another of the market leaders in vinyl siding, Kearney, Mo.-based Ply Gem Industries Inc., closed a 110-employee vinyl siding plant in Atlanta in the first quarter and also announced plans in October to its Denison, Texas, plant in the first quarter of 2008. The facility employs about 180.