Rehau announced on Wednesday that it will close its manufacturing plant in Winnipeg, Manitoba by the end of 2018.

“The decision to cease operations at our window profile extrusion plant in Winnipeg was difficult but necessary,” said Christian Fabian, CEO of Rehau Americas. “There is no realistic prospect for profitability, and therefore we have reached the unfortunate but inevitable decision to close this facility.”

The Winnipeg plant employs 75 workers. It provides profiles to a network of window manufacturers who supply vinyl windows to residential and commercial projects throughout Canada and the United States. Along with the plant closure will come an adjusted North American product portfolio that the company said will be focused on delivering technologically advanced designs.

Rehau said a “small number” of employees in the United States will also be affected by the Winnipeg plant closure. The company said that workers in Rehau’s other divisions, as well as the window solutions division in other regions of the Americas, will not be affected.

“Our plant in Winnipeg will continue to operate through 2018 as we sell-down inventory and complete customer orders,” said Fabian. “We will work closely with our customers to support and prepare them for transition. We recognize the contributions our window solutions division employees have made over the years to Rehau, and we are placing the highest priority on treating them fairly and respectfully. We are committed to working with them throughout this transition period.”

Rehau said that optimizing its global manufacturing network is a key part of the company’s group strategy, which involves focusing on core markets, increasing growth in developing and emerging markets such as Central and South America, and driving increased value-added innovation.

“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Fabian. “To that end, we are setting up our manufacturing network to service innovative production lines – in strategic geographic areas – to better meet current and future production needs and the evolving needs of our customers.”

Rehau employs approximately 20,000 workers at more than 170 locations around the world.

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