Potomac Pellets temporarily closed its manufacturing operations

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GrahamInVa

Minister of Fire
Jun 14, 2011
513
Eastern, Virginia
Don't look good... This plant is very close to me. They have over 200 employees and gross 23 million in revenue a year.

I really like these pellets too. :long:



January 11, 2012
KINSALE, VA.

Building-supply manufacturer Potomac Supply Corp. has temporarily closed its manufacturing operations in Kinsale and is looking for funding to continue.

CEO William T. Carden Jr. says in a news release that Potomac Supply's bank advised the company this week that it's unwilling to continue providing financing without additional capital investment.

Fifty-seven jobs were lost when Potomac Supply closed its sawmill in December. Carden says another 168 jobs will be lost if it cannot find funding to continue operations.

Options being pursued include new financing, private equity investment, divisional divestitures or sale of the company.

Carden attributes the company's financial struggles to the recession.

Founded in 1948, the Kinsale-based company has five manufacturing operations.
 
57 jobs lost at Kinsale business
By Lee Francis | Posted on Wednesday, December 21, 2011 at 10:02 am

By Amanda Ault



In what he calls “an extremely difficult decision†to have to make, Richard Gouldin Jr., Chief Operating Officer at Potomac Supply Corporation, wrote in a letter to Westmoreland County Supervisor Woody Hynson that the Kinsale-based company was terminating 57 employees. Gouldin also stated that the company was closing “most of its sawmill and planer mill operations†and this closure will be “permanent.â€

The employees were notified on Dec. 14 of the closure and most of the 57 employees’ positions were terminated on that day. In his letter, Gouldin said that some employees will stay


Potomac Supply in Kinsale recently announced the elimination of 57 jobs and the closure of its sawmill and planer mill operations.
on over the next four weeks and “will be paid their wages and benefits through that date.â€

Gouldin said that the sudden closure was based on the rough economy, and not on mismanagement within the business.

“We face a time when lumber can be bought at a price lower than what it costs for us to produce it,†Gouldin said. “This obviously is an impossible situation for us to overcome.â€

William T. Carden Jr., Chief Executive Officer at Potomac Supply, said in a written statement that these closures will not affect the company’s pressure treated lumber division, landscape tie mill, fencing and decking and bio-energy divisions.

“The great recession began to adversely affect Potomac in 2007,†Carden wrote. “Potomac is a proud, 63-year-old family business and is deeply devoted to its family of employees and its community.â€

Carden wrote that the company has tried to adapt to the changing economic conditions, but that the nature of its business has made that difficult.

“[T]he company is closely coupled to the housing market and lumber prices have been negatively impacted by the reduction in new housing starts,†Carden wrote. “Rising fuel costs have also contributed to an increase in inbound and outbound freight costs.â€

Carden did say that some of the company’s efforts to adapt did help in the short term. The company was able to cut costs and expand into bioenergy in both overseas and domestic markets, and he thought the company would be able to avoid having to take “drastic steps†many other businesses have had to take to deal with the recent economy.

In his letter, Gouldin stated that “sudden unforeseen business circumstance beyond the company’s control†led to the closing. Carden wrote that the company faces “an uncertain ability to meet market conditions and competitive pressures†led to the decision to close the sawmill and planer mill operations.
 
It's always sad when you hear of your fellow Americans losing their jobs... especially at Christmas time.
 
Man that really sucks. Losing decent paying jobs where the people and company are actually producing something (versus service jobs) hurts.

Here's hoping that someone can step in and purchase the company and make it a vital, ongoing operation. I feel bad for the folks that lost their jobs.
 
I was down work for a company this week, getting ready to install a new software package, when they called a meeting to announce the plant was closing. Many long term older employees. It will be tough for them to get rehired in the near future in a job with equal pay.
 
Sure hope they all land on their feet!.

From what many have been saying is the Potomac's were a decent pellet. Good chance some one may pick up the mill. But with the economy in the tank, Many business slow and little new homes being built. The lumber mill might be overlooked. But lets keep our fingers crossed for all of them.
 
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