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article imageNova Scotia: Temporary WallBoard Plant Closure Blamed on Energy Costs

By Bob Ewing     Jun 13, 2008 in Business
Federal Gypsum Company is closing its gypsum wallboard plant for one month due to rising cost of energy, the plant is located in Cape Breton.
Federal Gypsum Company is Nova Scotia's only gypsum wallboard plant and the company will be closing its doors for at least a month. The company's owners cite high energy prices for the decision to close the plant.
The company claims that energy prices have increased the costs of production and delivery. The slump in the American housing market means those increases can't be passed on to customers.
Approximately, 25 people will be laid off for at least one month.
Federal Gypsum came close to bankruptcy earlier this year but were able to conclude a deal with its bank to restructure its finances.
Various government sources have advanced $16 million in loans to the company.
More about Energy, Gas, Rising prices
 
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