Burlington Technologies Inc., which owns aluminum diecaster Alumetco and several other machining subsidiaries in Ontario, has filed for bankruptcy protection under Canada’s Companies Creditors’ Arrangement Act.
CCCA is Canada’s method for corporate reorganization, similar to Chapter 11. Local news reports say the company owes C$70 million ($56.2 million) to creditors.
Alumetco produces a variety of high-pressure diecastings for automotive parts, including brackets, water connectors, front and rear A/C housings, heat sinks, cam caps, cam shaft seal retainers, tensioner arm/bases, and throttle bodies, according to its web site. Its customers include Ford Motor Co. and General Motors Corp.
About 85 workers have been locked out of the Alumetco plant in Brantford, ON, since November 10, and 45 more reportedly have been laid off now at Burlington’s other divisions and headquarters operation in Oakville, ON. The Canadian Auto Workers union issued a statement that questions the company’s actual motives, stating that it should not have provoked a labor dispute in November if in fact it is “close to collapse.”
"Well-established businesses like Burlington Technologies do not go bankrupt over night," stated Steve Farkas, CAW area director. "What this company has done is despicable and defies reason."