News

Graymont announces its withdrawal from the concrete stone market and the assessment of its Joliette plant operations

March 12, 2008

Press Release - For Immediate Release

Joliette — André Lauzon, Manager of Graymont’s Joliette plant, today informed his employees, their representing union, as well as Graymont’s suppliers of the company’s decision to withdraw from the ready mix concrete stone market. The company’s customers were also informed of the decision which was made to preserve declining chemical-grade limestone reserves, and will lead to the layoff of 20 to 30 employees for periods of 12-16 weeks per year.

Prompted by the slowing Canadian and U.S. economy, insufficient stone reserves at the Joliette plant, high production costs relative to Graymont’s other Quebec plants, and the rapid rise in value of the Canadian dollar, Graymont is also conducting a detailed operational analysis of all its Eastern Canada lime plants to determine the best way of effectively responding to the new market realities.     

“It would be premature and risky to speculate on the decisions that we will make about the future of the Joliette facilities,” stated Lauzon. “But it should be noted that the production capacity of the Eastern Canadian plants currently exceeds the market demand and that the Joliette plant is the only one not to have stone reserves that justify the significant investments needed to stay competitive. For these reasons, we will hold discussions with our employees and their union representatives over the coming weeks to identify opportunities to improve the efficiency of our plant so these can be incorporated in Graymont’s overall operational analysis.”

Source:

André Lauzon, Eng.
Plant Manager
Graymont Joliette 
Telephone: (450) 759-8195

Information:

Yves Bellavance 
Nadeau Bellavance, Public Relations
Telephone: (819) 562-9998