The bad economy in the U.S. and the strength of the Canadian dollar are blamed.

SWANTON, Vt. (AP) – The economic downturn and new strength of the Canadian dollar are being blamed for the loss of nearly four dozen high-paying jobs in Franklin County.

Vermont Fasteners Manufacturing will close its Swanton manufacturing facility by the end of the year, Plant Manager Peter Kasper said Monday.

A sister company in Georgia, Vermont Fastener Sales Corp., also will shut its doors this year, he said.

Their Montreal-based parent company, Ivaco, ordered the closures after deciding to restructure under Canadian law and to stop American manufacturing operations.

Vermont Fasteners produces high-strength construction fasteners – namely bolts – used in heavy projects.

A total of 45 people will lose their jobs locally, but the company and Vermont Department of Employment and Training is providing them with job counseling and placement. Management notified workers last week.

“It’s a difficult situation, but, overall, our employees’ demeanors are excellent,” Kasper said. “We have a fantastic core of people who will be ideal for other employers.”

Vermont Fasteners will fill its remaining orders and shut down when its supply of raw material is depleted, he said.

In a statement, Ivaco said its restructuring plan will allow the company to return to profitability.

“The steel and steel products industries have been beset by serious difficulties over the past few years, caused, in part, by the broad economic downturn that has affected the North American economy for the last three years,” the statement said.

“As a result of this downturn, production and capital expenditures have declined throughout the North American economy, reducing the demand for steel, fabricated steel products and precision machined components produced and sold by Ivaco.”

Compounding the difficulties for Canadian-based manufacturers has been the rise in value of the Canadian dollar. Nearly 70 percent of Ivaco’s revenues are in U.S. dollars.

The increased value of the Canadian dollar relative to its American counterpart has meant lower Canadian dollar revenues on the company’s U.S. sales this year.

“This is a huge loss for Swanton,” said Dick Thompson, town administrator. “It leaves a significant void in our economic posture.”

Vermont Fasteners Manufacturing set up shop in the Swanton park in 1996. Three years later, Vermont Fasteners Manufacturing was joined by its affiliated company in Georgia.

Vermont Fasteners doubled its manufacturing capacity without new construction three years ago. In 2001, the company looked to build more space, but regulatory rules related to environmental protection caused the major expansion plan to fall through, and Ivaco backed out of the investment.

AP-ES-09-22-03 1535EDT