SANFORD — Thirty workers at Evonik Cyro will be laid off in the fourth quarter of this year as the company closes a production line in an effort to streamline its manufacturing operation.
Employees were to be told the news at midday, said Plant Manager Drew Scott. He said the workers, many of whom are long-term employees at the acrylics manufacturing facility on Route 109 in south Sanford, will be offered attractive severance packages and outplacement services.
He said the layoffs will not be phased-in until the fourth quarter.
“We really need to remain competitive and adapt some operations,” said Scott. “This will allow us to have a bright future in Sanford.”
Evonik Cyro has been a Sanford acrylics manufacturer for decades. Called Cyro for many years, the company was purchased by Evonik Degussa Corporation earlier this decade. The company’s North American headquarters are in Parsippany, N.J. Its parent company is headquartered in Germany.
The planned layoffs later this year will leave the Sanford facility’s workforce with about 120 employees, Scott said.
In June 2009, about 35 workers were laid off in Sanford and that action followed a voluntary severance program offered to employees in mid-May that year. At that time, 52 workers from a workforce of about 220 at the Sanford plant took advantage of the voluntary program.
This action however, is different because the one production line, called the cell cast line, will be halted and Evonik will source the product from its operations in Germany, Austria and China. Cell cast material is used in applications such as museum display cases, framing, retail displays, aquariums and signs.
The Sanford site will continue to manufacture acrylic sheet and molding compounds.
Scott said the streamlining will not affect the company’s customers and their ability to obtain products manufactured in the cell cast line.
While the 2009 voluntary severance program and layoffs in Sanford were attributed to the deep recession, this action is being to taken to align the operation to changing market conditions and enhance competitiveness, said Scott.
“Our challenge is to redefine how we approach our manufacturing operations, not just to reduce staffing. As we do so, we are committed to maintaining our high standards in the areas of safety, environment and health,” said John Rolando, President of Evonik Cyro in a prepared statement.
Scott said the company is committed to the community. He noted Evonik Cyro’s involvement with the Sanford Springvale Chamber of Commerce, Junior Achievement and United Way.
Scott said he believes the company has turned the corner on the recession.
“Actions like this will continue to assure we are viable in Sanford. This will ensure efficiency,” he said.
Scott said employees are being informed well in advance of the fourth quarter layoffs to allow them to plan for the future.
“While we regret the need to close this production line, we are working hard to minimize the impact on employees,” he said.
— Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com.
Comments are not available on this story.
Send questions/comments to the editors.
