Smith Foundry Shutting Down Minnesota Facility
July 26 2024 - 5:38PM
Business Wire
Smith Foundry has announced that it will be closing its facility
in Minneapolis less than two years after it acquired the century
old business and the air permit associated with the foundry, which
the Minnesota Pollution Control Agency (MPCA) approved at the time
of the acquisition. Adolfo Quiroga, President of Smith Foundry,
said that the company had no other alternative following the MPCA’s
most recent unreasonable demands with respect to its air permit and
despite the fact the company was operating in compliance with all
environmental laws and regulations.
The furnace melting and core making operations will be shut down
by Friday, July 26, 2024, and the remaining foundry operations will
cease on or before August 15, 2024. After that date, Smith Foundry
will conduct limited administrative and other non-operational
functions necessary for the wind-up of the business. The decision
follows Smith Foundry’s recent settlement with the U.S.
Environmental Protection Agency (EPA) in which it agreed to
discontinue the melting and pouring operations at its facility by
June 3, 2025, while being permitted to continue finishing and other
operations, which would have allowed the company to keep a majority
of its employees.
Smith Foundry, which has operated in Minneapolis, Minn., since
1923, was acquired by Zynik Capital Corporation in December 2022.
The iron foundry manufactures castings, provides geometric design
and other engineering services, and precise finishing work.
“The MPCA had a chance to make these air permitting demands of
the previous owner, Neil Ahlstrom, for decades which would have
shut down the foundry a long time ago, but they didn’t. And then,
when Zynik purchased Smith Foundry, the MPCA approved the transfer
of the existing air permit without a single question and without
expressing any concerns. They never informed us they had any
concerns about the foundry, its operations, or its existence in the
neighborhood, which has operated in Minneapolis for over one
hundred years,” said Mr. Quiroga. “Now, for reasons the MPCA did
not provide and despite our compliance with all environmental laws
and regulations and our commitment to alter our operations,
significantly reduce emissions and save jobs in East Phillips,
Minneapolis, and Minnesota, the MPCA is making unreasonable and
unjustified demands through their arbitrary and opaque air
permitting process that are essentially forcing us to close the
furnace sooner than expected. They are in essence rejecting our
agreement with the EPA. We are left with no other choice but to
shut down the foundry. Unfortunately, our employees and their
families will be impacted the most by this closure, which I deeply
regret. I wish there was more we could do.”
“While this is not the outcome we wanted, it does not deter us.
Our company strives to leave a lasting, positive impact on each
company, community and person, and ensure that our companies uphold
all laws and, not only meet, but exceed all standards expected of a
manufacturing company, including from an environmental and health
and safety perspective,” said a Zynik spokesperson. “We continue to
remain dedicated to those goals, while also focusing on keeping and
bringing back manufacturing to the U.S. and Canada. We regret that
we were not able to do business in Minnesota. But, going forward,
we will look to other states and jurisdictions that mirror our
mission to better the lives of everyone we come across and that
want responsible companies and good, well-paying jobs in their
communities. And we look forward to working with the EPA and other
regulators along the way.”
About Smith Foundry
Smith Foundry, founded in 1923, has continually evolved to meet
the changing needs of its customers, its community and the world.
From manufacturing pot belly stoves to becoming a leader in iron
casting, the company has shown unwavering commitment to its
employees and customers. Through strategic innovation and a focus
on quality, Smith Foundry has adapted and thrived for over ten
decades.
smithfoundry.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240726261210/en/
media@smithfoundry.com