Lafarge to shut down Kamloops cement plant | iNFOnews | Thompson-Okanagan's News Source
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Lafarge to shut down Kamloops cement plant

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KAMLOOPS - Lafarge will be mothballing manufacturing operations at its Kamloops cement plant.

The cement manufacturing plant will cease operations because of market conditions in western Canada, according to a press release from the company.

The plant has been operating at half capacity this year due, Lafarge spokesperson Jennifer Lewis says in an email. She cites the downturn in the oil and gas industry as the reason.

Of the 36 employees at the plant, Lafarge is keeping 10. Some will remain on site to run the terminal at the plant, which will continue operating, while others will move to other sites, though the company hasn't determined how many will stay in Kamloops. Employees were notified about the decision today, Oct. 20.

Kamloops's heavy industry tax rate may have been a factor in the decision.

"The industrial tax rate in Kamloops is higher than our Exshaw, Alta. and Richmond, B.C. cement plants which impacts our costs, particularly when we are not operating at full utilization," Lewis writes.

The economic situation isn’t expected to improve soon, the company states in the release, adding the shut down will not affect customers.

The closure won't be immediate, as it takes time to shut down operations. Lewis expects the shut down to be completed by the end of the year. The process means operations can restart if the market improves.

— This story was updated at 2:36 p.m., Thursday, Oct. 20, 2016 with comments from Lafarge spokesperson Jennifer Lewis.


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