A SEFPRO facility line in Falconer, New York, USA, is set to end production in August.
Saint-Gobain, the corporate owner of the facility, is discontinuing production of its Alumina-Zirconia-Silica (AZS) line.
It is expected to lead to the loss of 79 jobs at the local plant.
The move comes after Saint-Gobain conducted a thorough review of the group’s strategic priorities.
It only concerns the AZS product line at the Falconer site.
The Falconer facility, formerly known as Monofrax, will continue to operate its remaining product lines despite the shutdown, including its core alumina-based and high-zirconia materials.
AZS products will remain available through SEFPRO’s global manufacturing network, with production continuing at three other facilities worldwide.
SEFPRO makes fused cast refractories including high Zirconia, alumina and chrome products.
The facility has supplied its products to the glass industry worldwide.
The company stated: “SEFPRO remains fully committed to supporting its customers throughout this transition.
“By concentrating on resources and expertise on its core product lines, Monofrax will further strengthen long-term supply reliability, product quality, and customer service across all regions.”
The closure comes amid mounting cost pressures in the Alumina-Zirconia-Silica market.
AZS manufacturing costs are rising due to growing global demand for speciality ceramics, supply chain shortages, stricter environmental regulations and the energy-intensive nature of manufacturing.
Manufacturing AZS also involves fused-cast processes and high-temperature sintering, which are highly energy-intensive and carbon-heavy.
Operational costs of companies manufacturing AZS have been affected by energy costs and carbon compliance taxes, particularly in Europe and North America.
Furthermore, limits on the disposal of spent refractory waste have forced manufacturers to spend more on recycling, compliance, and transitioning to low-toxicity raw materials.