Synalloy halted production at its Palmer of Texas facility this week, as the COVID-19 crisis continues shutting down industries across the country, including oil and gas, for which the company fabricates tanks.

 

The company maintained pace with its 2020 financial plan through February, but its order book was hit with significant cancellations and postponements last month. Consequently, it will retain a small group of workers at its Palmer of Texas facility until further notice, Synalloy said in a statement.

 

The company—which produces stainless steel piping and tubing, galvanized pipes and tubes, fiberglass and steel storage tanks, and produces seamless carbon pipe and tubing—also announced its Q1 2020 shipments rose 3.6pc compared to the same period last year, while its bookings and backlogs grew by 30pc during the same period. Additionally, despite its chemical segment shipments decreasing by 7pc, its revenues increased by 2.6pc.

 

Synalloy’s business was classified as part of Department of Homeland Security-sanctioned critical infrastructure sectors and will, therefore, keep its other business units operational, albeit at reduced levels.

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