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CWI to stop manufacturing in Erin due to hydro costs

Job loss - About 20 to 25 jobs will be lost at Central Wire Industries’ Erin facility as it removes the manufacturing portion of its plant. CEO and president Paul From said rising hydro costs are to blame.
Photo by Olivia Rutt

CWI to stop manufacturing in Erin due to hydro costs

Central Wire Industries (CWI) will be stopping the manufacturing portion of its wire production business in Erin due to the high cost of power.

CEO and president Paul From said manufacturing of stainless steel and nickel alloy wire products will be relocated to two of its U.S. facilities and its Perth, Ontario facility, meaning 20 to 25 people will be out of jobs in Erin.

“It really came down to the price of power in Ontario … I mean we’re paying 19 cents a kilowatt hour in that plant versus less than half in U.S. facilities,” said From.

“It’s just very, very difficult. These rates keep going up … but at the end of the day, we’re not unlike other companies that have left Ontario.”

CWI has two plants in Canada, eight plants in the U.S. and one in the U.K.

From said the offices at the Erin facility will remain open and the building will be used mainly as a warehouse. From said the cost of power to run the equipment was a significant factor in the restructuring.

“We’re using power-intensive equipment to manufacture the product and it’s a big problem for us,” he said.

Transition

The transition of the Erin plant will take several months.

“This is recognizing that the landscape in Ontario from the standpoint of power and jobs is in jeopardy and that’s unfortunate,” said From.

July 14, 2017

 
 

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