Mpls. Plant Closure Leads To 50 Layoffs
SIFCO, Industries, Inc., recently announced the closure of its turbine services and repair plant in Minneapolis, a move that will result in the loss of all 50 employees there.
The Cleveland-based company said the efforts to “wind down” the operations in Minneapolis would begin immediately. According to the local plant’s general manager Jeff Thrun, however, the layoffs have not yet occurred.
Chief Operating Officer Jim Woidke told Twin Cities Business that the layoffs will occur in “phases,” not all at once, but he declined to disclose a specific timeline.
SIFCO Industries handles metalworking services—such as forging, heat-treating, coating, and machining—and produces products primarily used for the aerospace and energy industries. The company’s Minneapolis plant specifically handled the turbine components repair business.
“The decision to exit the repair business was made primarily due to its lack of strategic fit with SIFCO’s core aerospace and energy forging business, and the company’s desire to focus on growing its SIFCO forged components business,” the company said in a statement.
SIFCO also said its repair business wasn’t bringing in enough profits and that its outlook for future profits was a factor in the closure.
“The general aviation industry has been in bad shape for the last few years,” said Thrun. “It’s not just the turbine business, that’s just a part of the decline as a whole.”
The Minneapolis plant was SIFCO’s only footprint in the state. Woidke said the company has no plans to replace the Minneapolis plant, meaning that it is exiting Minnesota entirely.
SIFCO currently has about 500 employees worldwide and reported $125.1 million in revenue for its most recent fiscal year, up 16.5 percent from the previous year.