Smith Foundry has announced that it will be closing its facility in Minneapolis less than two years after it acquired the century old business and the air permit associated with the foundry, which the Minnesota Pollution Control Agency (MPCA) approved at the time of the acquisition. Adolfo Quiroga, President of Smith Foundry, said that the company had no other alternative following the MPCA’s most recent unreasonable demands with respect to its air permit and despite the fact the company was operating in compliance with all environmental laws and regulations.
The furnace melting and core making operations will be shut down by Friday, July 26, 2024, and the remaining foundry operations will cease on or before August 15, 2024. After that date, Smith Foundry will conduct limited administrative and other non-operational functions necessary for the wind-up of the business. The decision follows Smith Foundry’s recent settlement with the U.S. Environmental Protection Agency (EPA) in which it agreed to discontinue the melting and pouring operations at its facility by June 3, 2025, while being permitted to continue finishing and other operations, which would have allowed the company to keep a majority of its employees.
Smith Foundry, which has operated in Minneapolis, Minn., since 1923, was acquired by Zynik Capital Corporation in December 2022. The iron foundry manufactures castings, provides geometric design and other engineering services, and precise finishing work.
“The MPCA had a chance to make these air permitting demands of the previous owner, Neil Ahlstrom, for decades which would have shut down the foundry a long time ago, but they didn’t. And then, when Zynik purchased Smith Foundry, the MPCA approved the transfer of the existing air permit without a single question and without expressing any concerns. They never informed us they had any concerns about the foundry, its operations, or its existence in the neighborhood, which has operated in Minneapolis for over one hundred years,” said Mr. Quiroga. “Now, for reasons the MPCA did not provide and despite our compliance with all environmental laws and regulations and our commitment to alter our operations, significantly reduce emissions and save jobs in East Phillips, Minneapolis, and Minnesota, the MPCA is making unreasonable and unjustified demands through their arbitrary and opaque air permitting process that are essentially forcing us to close the furnace sooner than expected. They are in essence rejecting our agreement with the EPA. We are left with no other choice but to shut down the foundry. Unfortunately, our employees and their families will be impacted the most by this closure, which I deeply regret. I wish there was more we could do.”
“While this is not the outcome we wanted, it does not deter us. Our company strives to leave a lasting, positive impact on each company, community and person, and ensure that our companies uphold all laws and, not only meet, but exceed all standards expected of a manufacturing company, including from an environmental and health and safety perspective,” said a Zynik spokesperson. “We continue to remain dedicated to those goals, while also focusing on keeping and bringing back manufacturing to the U.S. and Canada. We regret that we were not able to do business in Minnesota. But, going forward, we will look to other states and jurisdictions that mirror our mission to better the lives of everyone we come across and that want responsible companies and good, well-paying jobs in their communities. And we look forward to working with the EPA and other regulators along the way.”
About Smith Foundry
Smith Foundry, founded in 1923, has continually evolved to meet the changing needs of its customers, its community and the world. From manufacturing pot belly stoves to becoming a leader in iron casting, the company has shown unwavering commitment to its employees and customers. Through strategic innovation and a focus on quality, Smith Foundry has adapted and thrived for over ten decades.
smithfoundry.com
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