Lion Elastomers to shutter Orange rubber production facility

The company cited declining demand and profitability in North America's butadiene elastomers market as a factor in the plant's closure.

ORANGE, Texas — Lion Elastomers will cease rubber production at its Orange facility by the end of the year, the company announced Thursday, affecting approximately 100 employees at a plant that has operated for more than six decades.

The closure of the butadiene-based elastomers production site, which has manufactured rubber products since 1961, comes as North America's butadiene elastomers market faces declining demand and profitability, according to the company.

Lion Elastomers acquired the Orange facility in 2019 and has invested substantially over the past five years to enhance technical capabilities and expand product offerings. However, the company determined that shuttering the operation was necessary for long-term growth and financial stability.

"Since acquiring the site in 2019, Lion has strived to be a good steward in every way for this plant and the community. Winding down rubber production is a decision not taken lightly," said Bobby Rikhoff, vice president of manufacturing for Lion Elastomers., according to the news release.

The decision will impact about 100 employees at the Orange site, but that number does not include additional contractors. Rikhoff said the company examined multiple alternatives before reaching its final decision.

"The Company has explored many options before coming to this decision," Rikhoff said.

Lion Elastomers stated it will support affected employees through the transition. The company expressed appreciation for workers' contributions to the facility throughout its operational history.

The company has notified employees, customers, community leaders and other stakeholders of the closure decision.

This is a developing story. We will update with more if and when we receive more confirmed information.