Molten aluminum supplier to HCM Alliston closes down plant

When it opened officially in June 2008, Molten Aluminum Producer Canada (MAPCAN) was to be on the environmental vanguard, a "state-of-the-art, energy efficient 'Green' molten aluminum facility" utilizing "100 per cent recycled aluminum."

At the time it was described as "the first Honda supplier in North America to deliver molten aluminum directly to die cast machines. In the process, there will be significant energy savings eliminating the need for one re-melt step of the product which will reduce carbon dioxide emissions by as much as 1,600 tonnes annually."

MAPCAN was a $16 million investment, inside a 97,000 sq. ft facility on the south side of Industrial Parkway, with capacity to produce 50,000 metric tonnes of aluminum annually for Honda's North American operations. It was to employ 45 people, working in three shifts. However, that level was never sustained because of economic conditions in North America starting in 2009 that slowed auto production industry-wide, then compounded last year by natural disasters in Japan and Thailand that further impacted Honda vehicle output world-wide.

Yesterday, MAPCAN, a joint venture between Honda Trading Group of Companies (65 per cent) and Asahi Seiren Co of Osaka, Japan (35 per cent), ceased operations in Alliston, a decision it announced to its employees last summer, but managed to stay out of any media spotlight until now.

This morning, Brad Wilson, Senior Manager at MAPCAN, issued the following statement:

"As a result of an increasingly competitive environment, MAPCAN announced to associates last summer that the facility would be shutting down sometime between January and April of 2012. Effective March 15, this is now in effect.

We wish to thank all of our associates, past and present, for their dedication and hard work. We provided our 20 associates separation packages and employment assistance as they made their transition, and in fact over 75 per cent of them have already found alternate employment."

At this post, it could not be confirmed what would happen to the MAPCAN facility which covers about 12 hectares of the 47 hectares owned by Honda. As well, it was not confirmed at this post what the impact will be on HCM's engine plant operation, whether molten aluminium was being transported into Alliston.