NEW YORK Canadian mechanical and coated tubing producer Delhi-Solac Inc. has been put into receivership under the Canadian Bankruptcy and Insolvency Act, although its U.S. subsidiary, Solaris Industries Inc., continues to operate, a company source told AMM.
"(Delhi-Solac is) in receivership. Theres a for sale sign on the building," the source said.
Most of the Delhi, Ontario, plants approximately 65 workers have been laid off as the company looks to restructure or be acquired. "Were not in liquidation yet. Some people are looking at buying (the company)," the company source said.
The bankruptcy follows years of tough market conditions for steel companies in the area. "Its a tough market, tough industry," the source said. "Theres overcapacity, and southern Ontario and Quebec were decimated over the last several years with automotive production leaving and everything else."
But Kings Mountain, N.C.-based Solaris Industries, which opened in 2010 (amm.com, Sept. 1, 2010), continues to operate. "Were still taking orders for Solaris (Industries), still producing at this point," the source said, but added that the subsidiary also is facing tough market conditions. "They have their own problems."
Delhi-Solac makes electric-resistant weld, light-wall, mechanical and coated tubing in ½-inch through 3-inch diameters for products including greenhouses, furniture and fencing. The company, which closed a second Canadian location in Saint-Jérôme, Quebec, in 2012, did sell into the northern United States, though "less and less" as more deliveries were made by Solaris Industries, the source said.