Sherwin Alumina out of Gregory, Texas, filed Chapter 11 Monday with the bankruptcy court in Corpus Christi with intentions to sale to a new company.
A representative for the plan said they are not closing, and that by filing Chapter 11 it will help with the financial restructuring of the company. Sherwin Alumina plans to continue its plant operations, which include customer shipments and employee wages and benefits.
The company also filed a plan that includes a purchase agreement with a new owner, Corpus Christi Alumina, which is also owned by the Glencore Company; however, it opens the door for other companies to compete to buy Sherwin Alumina.
In a statement to 3News, the president and CEO of Sherwin Alumina blamed the challenging global market. The move to file for Chapter 11 came after members of the company and the United Steel Workers Union went back to the table to continue negotiations last month after a lockout of the union members, which began in October of 2014.
Locked out workers remain hopeful that negotiations will continue.
The Gregory plant is capable of producing 1.65 million tons of alumina each year, which is used in products like smart phones, zippers, wiring and cars.
