Local mill, plant affected by economic slowdown

The global economic slowdown forced two more local companies that make commodity-type goods to take measures to shore up their bottom lines.

The severe drop in demand for cement from the construction industry has triggered 45 layoffs at Giant Cement Co.'s Harleyville plant, the Summerville-based company said Monday.

Giant Cement is eliminating the jobs at the Dorchester County site to cut expenses, blaming "the current deep recession" in the construction business.

At the same time, KapStone Paper and Packaging Corp., which bought MeadWestvaco Corp.'s local paper mill last summer, is slowing its production schedule in response to weakening demand, but is not eliminating any jobs.

The cuts at Giant Cement represent about a quarter of its 170-worker labor force at the Harleyville cement-making plant.

"To keep our business competitive we must reduce our payroll costs," Manuel Llop, president and chief executive officer of Giant Cement, said in a statement Monday. "This is a very difficult but necessary step. We will be losing many valuable and dedicated employees, and we greatly appreciate their contributions. We will assist in the transition for these employees as much as possible."

Giant Cement said it would provide the affected employees with severance pay based on years of service.

Employees also will be provided with additional benefits during the transition period, the company said.

Spain-owned Giant Cement completed a $132 million modernization of its Dorchester County plant in 2005, a time when the cement maker had trouble keeping up with demand.

KapStone is not laying off any workers at its North Charleston mill but instead is shutting down one of three linerboard production machines for a total of two weeks, said Larry Cobb, communications director.

The first one-week shutdown period started Monday.

The roughly 100 employees who work on the idled line will have to take unpaid time off or use vacation days, Cobb said.

Cobb blamed poor economic conditions for the temporary shutdown.

The mill makes paper products that are used to make folding cartons and linerboard, which is used to make corrugated cardboard.

"There's a weak order backlog, which essentially means orders have slowed down," Cobb said.

Other local manufacturers that have been affected by waning demand from their customers include: James Hardie Industries NV, which is temporarily shuttering its 70-employee Summerville siding factory this month because of the housing meltdown, and automotive parts giant Robert Bosch LLC, which is cutting its payroll by 200 jobs at its Dorchester Road plant.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com. Reach Katy Stech at 937-5549 or kstech@postandcourier.com.