Roughly 200 manufacturing jobs in town have once again been thrown into limbo after a deal between a Quebec-based pharmaceutical company and a potential buyer fell through.
Jacques Bibeau, of Pharmetics Inc., said the news was announced to employees at the Jarvis St. facility Tuesday.
He wouldn't say who the potential buyer was or why the deal broke down, but noted the stalemate happened last week after three months of dialogue.
"For now, we're still looking for another potential buyer," said Bibeau, the company's vice-president of human resources.
"There's still discussions going on with a new potential buyer."
The future of the Fort Erie plant, a leading maker in herbal products, vitamins and consumer products, was originally put into question in October when the company notified employees of plans to close unless a buyer could be found.
In a letter addressed to employees in October, which was obtained by The Niagara Falls Review, company officials said because of current market conditions in pharmaceutical contract manufacturing, the company hasn't been able to maintain or gain new business at a sustainable level.
In an interview with The Review Wednesday, however, Bibeau said the current market in Fort Erie is "going quite well."
"We transferred some workload from Laval to Fort Erie about a month-and-a-half ago," he said. "The work in Fort Erie is going full capacity."
Bibeau wouldn't disclose details about the new potential buyer, but he said the "optimal buyer is in our industry and would like to keep on doing what we're doing in Fort Erie."
Gord Falconer, a spokesman for the International Association of Machinists and Aerospace Workers Local 171, said the union was informed of the latest development Tuesday.
"We're doing our due diligence in what we can do to assist a new buyer," he said.
"We know that it affects not only the workers there, but it affects the whole community. More than 200 people are affected directly and as many as 300 or so suppliers. For the community, that's devastating."
The union represents about 160 of the roughly 200 employees at the Fort Erie plant.
A collective bargaining agreement between the employer and the employees expired in December, but Falconer said the two sides agreed to extend the agreement for one year in the hopes of finding a potential new buyer.
"We're trying to meet with the employer ASAP to talk about new buyers," he said.
Pharmetics, which is based in Laval, Que., purchased the Fort Erie plant and a sister operation in Burlington four years ago from Patheon Inc. in a deal worth $5.75 million.
The Fort Erie facility began operations in 1974 under the name Custom Pharmaceuticals.
In 2001, the plant received $2.3 million worth of upgrades to put it in a position to take advantage of the market for products in tablet form.
The Fort Erie operation produces and packages tablets, liquid creams and enzyme-based products in around 60 product lines for about 10 clients.
"At our Laval site, we mainly do private-brand, multi-vitamins," said Bibeau. "We do the private brand for Life, Shoppers, Loblaws and Costco.
"In Fort Erie, we specialize in contract manufacturing, doing OTCs, over-the-counter drugs."
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