Bayshore Concrete Products Corporation is selling its plant in Cape Charles, Virginia. This will result in employees at the plant being terminated.
The plant’s expected closing date is after spring 2018 but before the end of the year. The reason for the uncertainty regarding the closing date is because Bayshore Concrete wants to honor its existing contracts. While the plant continues to operate, the management team will continue to look for a potential purchaser of the building.
The operations of the plant include manufacturing and supplying various pre-cast and pre-stressed concrete materials to the U.S. and international markets. Bayshore Concrete is a subsidiary of Skanska AB (STO:STA-B), which is the fifth-largest construction company in the world.
What Will Happen to Employees at the Virginia Plant?
Back in September 2017, the company did announce that 100 layoffs were going to take place before spring 2018. Based on the most recent announcement, the timing of the job cuts has now been changed to before the end of the year.
The company will help all employees in this difficult transition period by working with local and state workforce development groups. In addition Bayshore will offer guidance and counseling.
Bayshore will also work with its partners and vendors to help fill vacant positions if any of the impacted employees are a good match.
A big reason for these job cuts and the plant shutdown is a lack of contracts. Work is tapering off on the billion-dollar project connecting New York and New Jersey via the Bayonne Bridge.
What Was Behind the Bayshore Concrete Plant Closure?
This closure is part of a larger downsizing plan from the parent company, Skanska. It is planning on cutting a total of 3,000 jobs in its global operations. The reasoning for this is to reduce the overall business operating cost to improve margins.
Skanska is also a publicly traded company, which means that it must satisfy its shareholder base. One very interesting move that was made by Skanska management during this restructuring process was maintaining the dividend payment per share. It seems that the management team is looking to decrease its operations in order to help reward the shareholders of the company.
“Skanska presents preliminary year-end results after taking charges related to restructuring and propose maintained dividend,” Skanska AB, January 13, 2018.
“Shore to lose jobs as Bayshore Concrete puts plant up for sale,” Delmarva Now, January 18, 2018.