ArcelorMittal Long Carbon North America - Wire Group announced Wednesday the closure of production at its Montreal wire mill in the city of Lachine as of June 30, 2008.
The Lachine mill currently employs 153 workers, though the closure will result in a net loss of 100 positions as some employees will be transferred to the company's other Montreal wire facility in the city of Saint-Patrick.
Alain Robitaille, General Manager of ArcelorMittal's Wire Group explained the company's decision, telling press, "The Lachine and Saint-Patrick wire mills have both been operating at less than 50 percent capacity since the beginning of 2007. This situation entails high production costs in the North American wire market where supply has been consistently exceeding demand since the early 2000s. We cannot continue operating two wire mills in a context where it is more advisable to operate only one plant and thereby bring our costs down to more competitive levels to ensure long term profitability."
Mr. Robitaille added that consumption from the US automotive and US steel wire markets has been on the decline in recent years, while the value of the Canadian dollar has risen against the US dollar.
ArcelorMittal says that the Saint-Patrick workforce will increase from 105 to 158 employees, with some employees impacted by the closure to be offered positions in other ArcelorMittal locations in the Montreal area.