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Southwire Company to reorganize Canadian operations

U.S.-based Southwire Company announced significant changes this year for its operations in Canada, where it plans to close its manufacturing plant in Stouffville, Ontario, and relocate its Canadian headquarters.

In a press release, Eric Schmidt, president of Southwire Canada, said that the company continues to face challenges in the North American wire and cable market. "While we feel the market has settled, we do not see significant improvements in the near future, leaving us with excess capacity and decreased production efficiency."

Southwire intends to close the Stouffville operations this year and shift product orders to plants in other areas, the release said. The move, it noted, will allow the company to reduce excess capacity while taking advantage of the proximity of other facilities to raw materials. Southwire purchased the Stouffville facility, which employs about 150 people, from Cable Tech in 2006.

"The closure is not a reflection on our people, their performance or the quality of their work," Schmidt said. "As our business continues to be affected by several factors, this is one of the tough decisions that allow Southwire Canada to remain profitable in an increasingly competitive market."

To further the focus on efficiency, the release said,  Southwire will consolidate its Canadian business units—including sales, marketing and support staff—under one roof in Mississauga, Ontario, in late April.

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