INDSPEC announces closing of Petrolia plant
PETROLIA — INDSPEC Chemical Corp. today announced that it has ceased production of resorcinol and related-products and will be exiting those businesses immediately, and will permanently close the Petrolia plant on July 31.
“Our workers have made a significant effort over the last several years to improve the viability of the plant. Nevertheless, the outlook for the business continues to be unfavorable due to a number of factors including a global oversupply of our main product, resorcinol, and because INDSPEC’s manufacturing process is not as efficient as that of global competitors,” said Plant Manager Andre Salameh. “This was difficult decision, as we have been a part of the Petrolia community since the 1920s.”
INDSPEC hopes to enter into effects bargaining with the employees’ union, and expects to offer severance, outplacement services and other counseling to all employees. Some number of employees may find employment opportunities at other locations within the chemical division of the parent company.
INDSPEC, an affiliate of Occidental Chemical Corporation, sold its PENACOLlTE® resins business in 2016, and agreed to continue manufacturing that product at the Petrolia plant for a transition period, which will cease at the end of July.