OWEN SOUND, Ontario (Feb. 2, 2012)—Veyance Technologies Canada Inc. plans to close its Owen Sound belting factory.
Tim Jarvis, Veyance director of North American manufacturing, cited an “excess of plant capacity in product lines manufactured” at the facility as the prime reason for the closure.
The Canadian belt and hose manufacturing arm of Fairlawn, Ohio-headquartered Veyance Technologies Inc. produces power transmission belts for the automotive and industrial industries.
The decision to close the site was made only “after extensive consideration,” Jarvis said, adding that the factory has been downsized over the last few years in attempts to delay the action.
“The people of the plant have worked hard to sustain commendable performance and maintain customer satisfaction,” he said. “The local union (Local 818L) and company will enter discussions to negotiate an orderly plant shutdown.”
Those sessions are expected to begin this week.
The company did not supply additional details “because of the sensitivity of this announcement and the fact there are some outstanding negotiation issues,” according to James Howell, manager of the Owen Sound facility.
Only about 40-45 people are currently employed at the plant, according to published reports in Ontario. Belt production at the plant probably will be shifted to sites in the U.S. and Mexico.