MUSCATINE, Iowa (April 21) — Bandag Inc. said it plans to phase out production at its Shawinigan, Quebec, tread rubber manufacturing plant by the end of June.
Its manufacturing teams "have been increasing efficiency and implementing process improvements" throughout the company´s North American manufacturing network, Muscatine-based Bandag said. After evaluating tread capacity and capabilities, it concluded ending production at the Shawinigan plant made sense because the facility "has the lowest product output of Bandag´s North American plants." Its production can easily be absorbed by Bandag´s larger North American plants, the company said, resulting in an overall improvement in plant capacity utilization.
The retreading materials and equipment manufacturer said it "remains fully committed to its Canadian dealers, fleet customers and the Canadian marketplace. Canadian dealers will continue to receive their tread products from distribution centers in either Rougemont or Long Beach, just as they do today."
Fifty-one Shawinigan employees will be affected by the shutdown. In addition to separation packages that include severance pay, the company said it will provide outplacement assistance to all affected employees.