NEW YORK Synalloy Corp. is closing the Bristol Fabrication unit of its Synalloy Fabrication LLC subsidiary.
"Management believes the decision to close Bristol Fab leaves the overall company stronger by eliminating a chronically unprofitable unit," the company said April 29. The closure is slated for June 27.
The Bristol, Tenn., unit lost $5.2 million from 2011 to 2013 and $1.05 million in the first quarter of 2014, Synalloy said.
A union contract at the Bristol operation expired in mid-February, and the company said it was not able to reach a more competitive labor agreement. "After months of negotiations with the union ... Bristol Fab was unable to reach an agreement that would allow Bristol Fab to operate profitably," the company said.
Spartanburg, S.C.-based Synalloy is legally obligated to pay a withdrawal liability to the unions pension fund of more than $1.9 million upon the closure, the company said.
Bristol Fab fabricates high-nickel alloy, stainless steel, carbon and chrome pipe, according to Synalloy Fabrications website. Synalloys business includes the production of stainless steel pipe, fiberglass and steel storage tanks, specialty chemicals, and stainless and carbon piping systems fabrication.