Chemicals maker Hexion Inc. will close its Norco plant and lay off 97 workers over the next three years. Hexion has cited cost savings and global restructuring as reasons for the closure.

In a notice to state workforce officials, the Columbus, Ohio-based, company said it plans to shut down the facility at 16122 River Road by 2019. It will start eliminating jobs at the plant July 1.

Hexion expects several rounds of layoffs, occurring in October 2016, January 2017 and, finally, January 2019 when the plant will be shuttered. Nearly two-thirds of the affected workers are United Steelworkers Local 750 members.

Hexion makes resins and adhesives for use in a wide range of industries. The company's bottom line has been hurt by shifting global demand and the strength of the U.S. dollar relative to currencies in other markets where the company does business.

Hexion seeks to consolidate manufacturing of specialty resin products to facilities elsewhere in the U.S. and in Europe. In its latest earnings release, it highlighted the Norco closure as a key measure as it restructures its global epoxy, phenolic and coating resins segment. The closure is expected to yield $20 million in annual savings, according to the release.

The Norco layoffs affect a wide range of positions, including 52 process operators who worked at the facility. Employees will be "paid all wages and other benefits to which they are entitled" through their last day of work, according to the notice.

Hexion did not specify whether it would offer a severance package, but said it would provide more information about specific benefits available to eligible employees on or before their termination date, the notice said.

Hexion has roughly 5,200 employees at locations worldwide. The company also operates plants in Alexandria, Gonzales, Geismar and Luling.

 

Source : nola.com

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