Sherritt International announced November 4 that it plans to temporarily lay off about 280 employees, representing 47 per cent of its Canadian workforce, as it seeks to conserve cash while working to restart metals refining in Fort Saskatchewan, Alberta.

The company expects the layoffs to last approximately 90 days, although employees could be recalled earlier if operational needs change.

Metals refining stopped June 22 after the facility exhausted its feed inventory. Sherritt said ammonia fertilizer and sulphuric acid production and sales will continue during the layoffs, alongside essential maintenance, environmental protection and safety work.

Interim president and chief executive Peter Hancock acknowledged the consequences for employees and their families. The company said it continues to work through the regulatory, operational and financial requirements for a restart.

The announcement follows an October 20 update in which Sherritt disclosed a U.S. licence allowing fuel, fuel oil and sulphur shipments to its Moa Nickel operations in Cuba. That permission covers supplies and related services, but the company said restarting Moa would require a second emergency licence.

Sherritt also warned in that earlier update that it needed additional financing and a broader recapitalization to meet obligations to suppliers and other stakeholders. It said there was no assurance financing would arrive on acceptable terms or within the required timeframe.

Wednesday’s announcement did not provide a firm date for resumed metals refining. The projected layoff period is a company estimate, rather than a confirmed schedule for bringing production back.

Accompanying image: editorial illustration.

Sources