Air Products & Chemicals Inc. plans to fire more workers at a northeastern Pennsylvania factory on slowing demand for energy equipment.
The plant in Hanover Township, which cut 26 workers in September, makes equipment for the liquefied natural gas industry.
“We wish this was not the case, but the global market demand for new LNG heat exchangers that can take two years or longer to build for LNG facilities has slowed substantially,” spokesperson Katie McDonald said in an emailed statement obtained by the Citizens’ Voice.
Orders have slowed down because a drop in oil prices has hurt LNG producers, while an oversupply of the energy source will take time to work off, she told the newspaper.
“We will be adjusting the workforce in a measured manner throughout 2017 to suit the actual need at the time, and importantly in order to maintain our workforce, skills and facility as necessary,” she said.
Employees at the plant make liquefied natural gas heat exchangers that take years to build and have to be transported by rail car, the Wilkes-Barre Times Leader reported. The plant has made the equipment for more than 45 years, and its workers are represented by the International Association of Machinists and Aerospace Workers Local 2200.
Air Products has risen 5.3 percent this year to $137.04 a share as of mid-day Nov. 8.
The company was founded in 1940 and employs about 17,000 people worldwide, according to its website.
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