Pace Industries will permanently shut its aluminum die casting facility in Arden Hills and lay off 107 workers by October, according to a notice filed this week with state of Minnesota.
Of the 107 nonunion workers affected by the closure of the plant at 3737 Lexington Av., 88 are in production, three are clerical and administration staffers and 16 are managers.
All layoffs and the closing of the plant are expected to be complete by Oct. 15, company officials said in an Aug. 8 letter to Minnesota Department of Employment and Economic Development (DEED).
It was not immediately apparent why the plant is closing. However, state officials said in a statement that “this layoff/closure has potential trade implications.” A state official said Friday that DEED hopes to make a determination soon on that issue. Pace officials could not be reached.
Aluminum and steel imports into the United States have been affected by trade U.S. tariffs imposed on metal goods made in China and other countries.
Such tariffs increased prices for U.S. producers and disrupted global supply chains.
However, it is not clear if those tariffs and retaliation from China affected Pace Industries or more specifically, its Arden Hills facility.
In 2016, the Arkansas-based company said it would build a $6.3 million addition to a plant it operates in Maple Lake, Minn., creating 20 new jobs.
In the letter to the state, Pace officials indicated affected employees may be allowed to apply for other positions elsewhere in the company. Pace also runs facilities in Wisconsin, Missouri, Arkansas, Michigan, Pennsylvania, Massachusetts and Mexico.
Pace is a die casting, manufacturing and engineering firm that serves many sectors including customers that specialize in making medical device, vehicle, aerospace, defense and lighting products.
DEED officials said Friday that the state will launch a “rapid response” team of job counselors to assist displaced workers. The effort will be led by specialists Laura Dale and Marla Beaty.