Bonnell Aluminum to close Indiana site

An aluminium extrusion plant in Kentland, Indiana, USA is to close.

Bonnell Aluminum is set to close the site by the end of September this year, said its owner Tredegar Corporation.

The plant employs 146 people and had sales of $38M in 2010 but had been operating at a loss for several years.

Tredegar said it would cost about $8M to close the site down, including accelerated depreciation on fixed assets of $4M, severance-related charges of $1M and other shutdown-related charges of $3M. Other shutdown-related charges are made up of equipment transfers and plant shutdown charges.

Duncan Crowdis, president of Bonnell Aluminum, said prospects of a recovery in Kentland’s core market of construction and residential building were a long way away, hence the reason to close the site.

Bonnell Aluminum employs 825 people at three production facilities in the USA.