Wynne's Hydro Scheme Driving Businesses Away and Costing Jobs
The high cost of electricity is driving about 20 manufacturing jobs out of the Central Wire Industries Ltd. plant on Erinville Drive.
As the price of power increases in Ontario, the Canadian company has decided to redistribute its production capabilities within its multiple North American sites, and stop manufacturing completely at its Erin branch.
The jobs will be phased out over the next six months, but the company will maintain an office and warehouse in Erin.
The stainless and specialty alloy wire manufacturer has plants in Ontario, the U.K., and the U.S., and CEO Paul From says the company is paying more than double for power in Erin compared to most of the American plants.
“Power is becoming more difficult and expensive to afford in Ontario,” he said. “Until the Government of Ontario finds a way to restructure the debt and electricity costs associated with past and future power generation contracts and streamlines its regulatory compliance requirements [for small- and medium-sized enterprises], CWI’s growth and expansion will most likely occur outside of Ontario.”
CWI operation in Erin will continue to have full-time order fulfillment staff, including office administration and warehouse workers, while other employees have retired or accepted termination packages.
The production equipment from Erin will be relocated to one of the company’s other operational centres in North America.
“It is essentially becoming a warehouse, not a manufacturing plant,” said From. “It’s very disappointing to see this happen in Canada. We are a Canadian company … we employ over 80 people here in Perth and this whole thing with power, people have to realize, it’s really difficult.”
Read more: https://www.caledonenterprise.com/news-story/7408737-hydro-rates-force-wire-production-out-of-erin/