Fairmont Ruskin Manufacturing Plant, which employs 185 people, announced their planned closure Monday.
In a press release company officials blamed the economy more specifically, the pickup in alternative energy and a drop in nonresidential construction and spending.
Some of the work they do at the Fairmont plant will be transitioned to company locations in other states.
The full press release can be read below:
Unfortunately, commercial construction markets continue to be down significantly from their peak several years ago. New commercial construction starts are off over 50% from 2007 and a significant market increase is not expected in the immediate future. As a result, many industries like ours that rely heavily on commercial construction have been adversely affected in this country and this continues to affect our business as well.
Additionally, nuclear power plants in this country that were in planning stages just a few years ago have been shelved since the Japanese Tsunami, the acceleration of natural gas fracking technology, and other alternative energy initiatives. Public nonresidential construction spending has dropped on average at a much higher rate than private spending.
Analyzing industry reports, it has become very clear these markets will take a long time to recover affecting the entire industry. Northeast markets served primarily from our Lexington, Kentucky and Fairmont, West Virginia facilities are some of the hardest hit.
The sustained economic challenges in the commercial construction segment require us to continue to adjust our manufacturing capacity accordingly. It is apparent that we have excess capacity, particularly serving the Northeast US service area. Regrettably, the company has made the difficult decision to close the Fairmont location as a result. Over the next several months, we will transition Fairmont activities to several other Ruskin locations including Lexington, Kentucky, Geneva, Alabama, and Parsons, Kansas.
This plant closing will impact all office and plant personnel at Fairmont and the facility is expected to be closed permanently around July 31, 2014. The Company thanks all of the Ruskin Fairmont employees for their hard work and dedication over the past 16 years. A detailed announcement was read to all employees on Monday, October 7.