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A Statement from Cianbro CEO Peter Vigue Regarding Brewer Reductions


 As the fluctuations continue within the struggling global economy, our client in the Motiva Refinery Expansion project continues to adjust their timetable. And those adjustments continue to impact our team members at Cianbro's Eastern Manufacturing Facility in Brewer. The client has asked us to scale back our Brewer workforce for the time being. That means we will have to reduce our payroll by about 35 team members, effective January 23rd.  Additionally, Cianbro will transfer approximately 75 more team members to other projects within our company during the week of January 26th. 

Here is the reasoning behind the changes. One symptom of the recession is that the demand for oil has fallen steeply since Motiva hired Cianbro to produce refinery modules at our facility in Brewer. As a result, Motiva has transitioned from a construction timetable that was driven by schedule to one that is driven by cost. Officials at Cianbro are on record stating that such adjustments make good business sense. Haste makes waste in the construction industry, and there is no reason for a hasty refinery expansion when global refining capacity suddenly exceeds the demand for petroleum products. 

The more deliberate pace that the Motiva Project has adopted does not mean that Cianbro will do less work for the venture. It does mean that the work may expand well into 2010, rather than end in October of 2009 as originally planned. The new workforce numbers in Brewer put us at the level which was originally planned prior to Motiva's decision last fall to ramp up to the around-the-clock schedule that persisted until the collapse of fuel prices late in 2008. Cianbro is using all of the company's innovative thinking in attempts to offset the impact that these changes might have upon our team members. Our company has just finalized a deal for work in the northern half of Maine which will create 50 new construction jobs. We also have the springtime backlog of projects which are scheduled to get underway beginning in late March. That work will require new hiring. Those team members who will eventually transition into new projects will continue to receive company benefits for up to eight weeks as the springtime backlog approaches.

It is customary in the construction industry that clients will often accelerate or decelerate their projects, particularly on a seasonal basis. Part of Cianbro's strategy for success has always been to stay flexible and nimble when responding to the needs of our customers. This is no less the case with our important client, Motiva, and their monumental expansion project. We are confident that those team members who are displaced by this recessionary hiccup will have new opportunities within Cianbro in the future, just as they've always had in the past. As a company that cares about its people, we will work hard to achieve our long-valued goals:  to serve clients with quality, innovation and efficiency and to remain dedicated to improving our communities with the help of worthwhile employment. 

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