SANFORD — Thirty-five workers at the Evonik Cyro plant in south Sanford were laid off today.
The layoffs are part of the company’s North American restructuring plan, said plant manager Drew Scott and company spokesman Mike Sheridan in a telephone interview this morning. As well as the 35 job losses in Sanford, there were 21 layoffs in Evonik’s other North American facilities, Sheridan said.
The 35 workers were informed of the layoff at a general meeting this morning. The layoffs are in addition to a voluntary severance program offered to employees in mid-May. At that time, 52 workers from a workforce of about 220 took advantage of the voluntary program, said Scott.
The layoffs are among a series of cost-saving initiatives to improve efficiency and competitiveness at the company’s North American operations in the face of the economic downturn which has resulted in what the company’s president has described as a “dramatic fall” in demand for its products.
Cyro has been a Sanford acrylics manufacturer for decades. The company, now called Evonik Cyro LLC, was purchased by Evonik Degussa Corporation earlier this decade. Its North American headquarters are in Parsippany, N.J.
“This is a tough day for employees,” said Scott. “We will work with them.”
He said an outplacement team was on hand in the plant today along with representatives of the Employee Assistance Program, which will be available to laid off workers through the end of the year.
Workers will receive a financial severance package, outplacement services and the company will work with the Maine labor department’s Rapid Response program to help laid off workers.
“To compete effectively, we must continually strive to adapt our operations to the changing market conditions,” said John Rolando, President of Evonik Cyro in a prepared statement. “Our business and industry are challenged by a dramatic fall in demand for our products in the automotive, construction and retail display industries. We also face volatile energy and raw material costs, as well as pressure from globalization as customers move manufacturing offshore. We are acting to address these issues and to improve our competitiveness, but regrettably, these measures involve job losses.”
The cost saving initiatives seek savings in the range of $9 million annually and are part of Evonik Industries’ global savings program announced in May 2009, which targets savings of $690 million annually by 2012.
Other cost saving measures across North American operations include postponing capital improvements, Sheridan said.
Scott, the Sanford plant manager, said taking the steps now will improve the efficiency of the Sanford site.
“We will improve our competitiveness and help ensure the long-term future of the facility and protect the remaining jobs,” he said. “The action announced today is not an easy one and in no way reflects on the performance of the Sanford team. We recognize that this decision will impact our employees and the community and are committed to minimize the impact.”
Scott said Evonik Cyro LLC will remains a 24 hours a day, seven day a week operation in south Sanford.
— Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com.
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