The drop in oil prices is taking its toll on an East Tennessee plant that produces drilling equipment.
Despite higher sales and profits at most of its company lines, Astec Industries Inc. said Tuesday that it will close its facility in Loudon, Tenn., on May 31 and consolidate all of its GEFCO operations in Enid, Okla., due to the decline in oil exploration activity.
The move will cut 75 jobs. Astec will take a $1 million charge for the closing the 360,000-square-foot plant in the second quarter.
“We will do our best to place those employees with other Astec industries companies as were able to,” Astec CEO Ben Brock said. “Orders so far in 2015 have been steady with the exception of products targeted at the oil exploration industry due to the well-publicized decrease in the price of oil.”
The main products made in Loudon are oil drill rigs and pump trailers.