Aleris International announces Nichols Aluminum plant closure, 95 job cuts in Decatur

Ohio-based Aleris International said Wednesday it will close its aluminum finishing plant in Decatur just a few months after acquiring the business in a $110 million cash deal.

Nichols Aluminum, which began as Decatur Aluminum Corp. in the late 1950s and now has 95 employees, will shut down during the next few months. However, Aleris spokesman Jason Saragian did not give a specific timeline for the closure.

"Aleris decided to discontinue operations at its facility in Decatur, Alabama, when we determined that our operations could be streamlined to serve our customers more efficiently by moving production to other facilities within our U.S. operations," he told AL.com.

The Decatur plant on 2001 Alabama 20 West is an aluminum finishing operation that makes coated aluminum primarily for the building and construction industries. Saragian said affected workers are "welcome" to apply for other jobs within Aleris International, but there are currently no openings in the Decatur area.

In early April, the aluminum rolled products leader also acquired facilities in Davenport, Iowa and Lincolnshire, Ill., but has no plans to close additional plants at this time. Saragian said "we didn't simply acquire a business to close it down."

"As part of our system optimization work related to the integration process of a larger business, which includes facilities in Davenport, Iowa and Lincolnshire, Ill., Aleris decided to discontinue operations in Decatur," he said. "We are confident that operations can be streamlined to serve our customers more efficiently by moving that production from Decatur to other facilities within our U.S. operations. As you might imagine, the addition of those assets to the footprint of Aleris creates a broader manufacturing footprint across the U.S."

Aleris, a privately-held company, has more than 40 production plants in North America, Europe and Asia.

An effects bargaining process with the union representing plant workers will determine the terms of separation for employees of the Decatur facility.

"Those impacted and not represented by the union will be eligible for severance under the company severance plan," Saragian said.

The Nichols Aluminum shut down is one of several plant closures in north Alabama during the last 1 ½ years. The region is already suffering major job cuts with the loss of International Paper in Courtland (1,096 workers), Hillshire Brands in Florence (1,100), Pilgrim's Pride in Boaz (1,000), Navistar in Huntsville (200), izzy+ in Florence (200) and HON Company in Florence (190).

Saragian said he wasn't sure about the future of the facility.

"Those details will be clearer as the shift in production progresses," he said.