Northwest Pipe to Curtail Water Pipe Capacity, Announces Plant Closure
07/13/2016 - Washington-based Northwest Pipe Co. is closing its Denver, Colo., facility in an effort to reduce its steel water pipe production capacity, the company has announced.
The action will lop approximately 20 percent of its capacity off its books, the company said.
“This difficult decision was driven primarily by the need to address the significant imbalance between production capacity and demand in the steel water pipe market. The smaller footprint will allow us to sharpen our focus on margin over tons and reduce costs, while we maintain a leading market share,” said Northwest president and chief executive Scott Montross in a statement.
“However, making the decision to close a production facility is always very difficult due to the impact on the employees and their families,” he said.
The company said production is to cease by the fourth quarter; the final shipments will leave the facility in the first quarter of 2017.
“This difficult decision was driven primarily by the need to address the significant imbalance between production capacity and demand in the steel water pipe market. The smaller footprint will allow us to sharpen our focus on margin over tons and reduce costs, while we maintain a leading market share,” said Northwest president and chief executive Scott Montross in a statement.
“However, making the decision to close a production facility is always very difficult due to the impact on the employees and their families,” he said.
The company said production is to cease by the fourth quarter; the final shipments will leave the facility in the first quarter of 2017.
