CB&I will begin to close its Addis pipe fabrication shop in late September, a move that will put 126 employees out of work.
The company, which has local offices on Essen Lane in Baton Rouge, disclosed the layoffs in a letter sent to the Louisiana Workforce Commission Thursday.
“For economic reasons we have decided to close the entire CB&I Addis Shop,” the Woodlands, Texas-based company said in the letter.
The first layoffs are set to begin Sept. 22, and the entire facility will be closed by Jan. 31. All employees will be notified at least 60 days in advance from when they will be laid off.
The CB&I facility is located at 7012 La. 1 South.
About 50 people were laid off at the Addis shop in 2009, when the facility was owned by The Shaw Group. CB&I acquired Shaw, a Baton Rouge engineering, construction and fabrication company, in February 2013 in a $3 billion deal.
In addition to the Addis layoffs in 2009, Shaw had also eliminated more than 400 pipe fabrication jobs, closing shops in Monroe and Tulsa, Oklahoma, and trimming 40 jobs in Walker. At the time, Shaw attributed the staff reductions to changing business conditions amid the recession. Shaw also had opened a 370,000-square-foot fabrication facility in Matamoros, Mexico, in 2008.
In its letter Thursday about the Addis closure and layoffs, CB&I said it continually evaluates costs and workload at its facilities. It cited unspecified economic reasons for the permanent closure in Addis.
Repeated attempts to contact CB&I officials for comment about the impending plant shutdown were unsuccessful.
Since its acquisition of Shaw, CB&I has centralized its government solutions division in Baton Rouge, a move that will add 400 direct jobs.