Residents and workers in Maitland, Ont., say they were caught completely off guard this week by news that U.S.-based company Invista is shutting down its chemical plant on the shore of the St. Lawrence River.
Just one year ago, Invista announced a $23-million investment in the operation, seen by many as a promising sign for the plant that has been a key part of the community for 71 years.
Now, 100 jobs are on the chopping block, and many local contractors and businesses in the village of 1,000 will likely feel the impact of the closure.
In a statement thanking its employees in Maitland, Invista president and CEO Brook Vickery said the decision was “not a reflection of their efforts, but rather a reality of today’s market environment.” The company is relocating production to Texas.
Local MPP Steve Clark said the closure is “devastating, and a direct result of the ongoing trade war under the Trump administration.”
The mayor of Augusta Township, which includes Maitland, also questions the reason cited by the company.
“I don’t care what they say…. All of sudden, that’s our reality,” said Jeff Shaver. “U.S.-based companies are probably getting a little pressure to go back to the U.S.”
Shaver warned other communities to expect more of the same.
“How many more communities are going to be hit with the same news? This is what’s happening,” he said.
The global chemical manufacturing sector has indeed been under some pressure, according to Greg Moffatt, president and CEO of the Chemistry Industry Association of Canada.
“A lot of it has to do with overcapacity, chemical production broadly. But it’s also been influenced by market demands,” he said.
Moffatt said trade dynamics between Canada and the U.S. are also a major factor, as 80 per cent of all production is exported, and 80 per cent of all exports go to the U.S.
While most chemical products are free of tariffs, the markets they’re typically sold into are not.
“Automotives, construction … chemistry and plastics are foundational to many key sectors,” he said. “Those sectors are under pressure right now because of weak demand, and the uncertainty created through trading tariffs.”
Asked whether he expects more chemical manufacturing plant closures, Moffatt said the focus should instead be on what Canada can control: improving competitiveness through tax, regulatory and internal trade reform.
The Invista plant in Maitland will close gradually over the next two years, and the 100 or so employees being let go have been offered a severance package.
Still, the municipality wants to put services in place to help them find employment elsewhere.
Clark said he’s reached out to the provincial government for support, and vowed assisting those affected will remain a top priority.
As for Shaver, he’s hoping government policies can lure a new player to the area, where Maitland has the second-largest industrial park for chemical manufacturing in Ontario.
