Lehigh Hanson, Inc. announced today that it will halt cement production at its Glens Falls plant. The plant produces Cement Type I, II and III masonry, according to the Lehigh Hanson website.
Operations will be shut down in a phased manner in 2023, a statement from the company says. The Glens Falls plant currently operates with 85 full-time employees.
"It's a shock to lose any employer in Glens Falls, nevermind one that has 80-some employees," Mayor Bill Collins said shortly after receiving the press release.
Although he said he has not seen this large of a closing during his tenure as either as Common Council member or now as mayor, his priority will focus on the workers.
"First step is to learn about what’s going on with them and see what to do to help those folks,” he said. Next is to consider what the company's intent is with the property at 313 Warren Street. The third would look to challenges or opportunities available for the city, he said.
The company owns about 66 acres with a total assessed value of more than $22 million on and around 313 Warren St., according to city records.
Collins said he plans to meet with Economic Development Director Jeff Flagg to discuss this, he said.
Dave O’Brien the Chair of the Warren Washington Industrial Development Corporation said he too was unaware of the company’s decision until he read the press release today.
"This is always horrible news to hear, that we have a long-standing compnay in GF who is leaving,” O’Brien said. The plant has been operating in Glens Falls since 1893, the release says.
According to the company press release, changes in the global cement industry have made it “increasingly difficult for relatively small and aging plants like the Glens Falls facility to cost-effectively manufacture its products.
“The decision to halt production at this facility is in line with the company’s ongoing efforts to optimize its asset base and decrease the complexity of its operations.
“With the company’s new state-of-the-art and energy-efficient cement plant in Mitchell, Ind., coming online next year, additional cement capacity in the company’s network will be re-directed to the New England area.”
O’Brien said the WWIDA was not privy to this information earlier, the company did not reach out to the IDA to talk about possible locations in the region to relocate. O’Brien said: "We knew they were a smaller production facility,” but the IDA never heard about this prior to the press release.
The publication Global Cement is reporting today that Lehigh Hanson plans to stop cement production at its integrated Permanente plant near Cupertino, California. That plant will become, mainly, a distribution center, the story says. [Read more here.] The announcement comes just a few days after GlobalFoundries in Saratoga County announced layoffs. In recent weeks tech giants Twitter, Facebook and Amazon have announced layoffs.
Asked if this is the sign of a weakening economy, Jim Siplon, the president of the Warren County Economic Development Corporation, was not so sure. Before taking the presidency of the WarrenEDC he was an executive with Just Water, Fuji Water and with other large corporations.
"Certainly [it is] notable and concerning, the idea that large corporations are refining their workforces," he said, adding that there are business cycles, so the adjustments might not be pointing to something bigger. The inflation and low unemployment seen lately was likely too strong to maintain.
At the same time, "Some amount of retraction...was expected."
Although he did not know that the layoffs were coming, he said it was not entirely unexpected.
"The conitnued evolution of that industry is something we've been tracking for a long time," he said, adding that smaller players have a tough time competing.
The company was able to pivot and provide needed materials when the border with Canada closed during the pandemic, but apparently it was not enough to sustain it long-term. Siplon, as Mayor Collins said, is looking for what opportunities might be available in the midst of this. He said WarrenEDC will help the employees in whatever way they can.
Companies of this size that layoff this many people must register the layoff on the State’s WARN Act page. Nothing is listed there yet.
The company did not return a call for comment.