MUSCATINE, Iowa-Bandag Inc. plans to phase out production of tread rubber at its Shawinigan, Quebec, plant by the end of June.
After evaluating capacity and capabilities at its North American facilities, Bandag concluded ending production at Shawinigan made sense because the factory has the lowest output of these plants. Shawinigan´s production can be absorbed by Bandag´s larger North American plants, the company said, resulting in an overall improvement in capacity utilization.
The retreading materials and equipment manufacturer said it remains 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, N.C., or Long Beach, Calif., Bandag said.
The shutdown will cost 51 Shawinigan employees their jobs. In addition to separation packages that include severance pay, the company said it will provide outplacement assistance to all affected employees.