The Sherwin Alumina plant in Gregory, near Corpus Christi, which as operated for 62 years turning bauxite into alumina. Courtesy photo
A Texas judge officially closed the Sherwin Alumina plant in Gregory, just outside of Corpus Christi, granting at least $2,000 in severance pay to each of the about 450 union workers who have been on strike for the past two years.
U.S. Bankruptcy Court Judge David R. Jones signed an order Nov. 3 authorizing the company, which filed for bankruptcy in August, to enter into a closure agreement with the United Steel Workers International Union. The deal includes continuing retiree benefits for workers until the end of the year, paying $10,000 each to the families of three employees who died during the lockout period and putting $2 million in an employee benefits trust. USW had filed a claim in March asking for $38.3 million.
After filing for Chapter 11 bankruptcy in January of this year, Sherwin Alumina notified union workers that the plant was permanently closing. That became a reality Friday, Nov. 4, the day after the judge’s ruling. The company cited assets of $100 million to $500 million with similar liabilities.
The plant opened in 1953, producing alumina from bauxite. A lost contract to provide alumina to Noranda Alumina, one of its biggest customers, led to the final decision to call it quits, officials said earlier this year.
At the time of the bankruptcy filing, company president and CEO Thomas Russell called the company a long-term economic pillar of the Corpus Christi region and one of the world’s leading alumina-production businesses.
“However, the challenging global market conditions for alumina prevent Sherwin from maximizing the significant value of its assets,” he said at the time. “To further confirm that the proposed sale represents the highest or best offer for Sherwin's assets, the company plans to immediately launch a competitive sale process.”
In April, the Port of Corpus Christi announced it would considered buying the company, going as far as to make a bid for the property. Nothing ever came of it.
“This was an extremely difficult decision to make, and one we arrived at only after exhausting all other options,” said Russell in an Aug. 1 media release, adding that the company would try to keep the plant going. “Unfortunately, at this time, the best available option for our stakeholders is an orderly wind-down of Sherwin’s operations.”
