Layoffs reported as contract ends on chemical plant expansion project in Alabama
More than 140 workers are impacted by a German specialty chemicals company’s decision to end its contract in Alabama with an industrial manufacturing company.
A recent notice filed with the state says 143 workers in Theodore near Mobile were laid off starting April 16. The notice appears to have been filed by the contractor, Bilfinger Inc. on May 7, per the Alabama Department of Commerce website.
Spokespeople for Bilfinger and the Commerce Department did not immediately respond to requests for comment.
Evonik, the German company that operates the chemical plant in Theodore, confirmed it recently ended a contract at the site of a plant expansion project. In 2022, Evonik announced plans to invest nearly $177 million in expanding the plant to support its animal nutrition business. That includes building an additional plant at the site, bolstered by state incentives. It was originally slated for completion by the end of 2024. On Monday, the company confirmed with AL.com that its expansion is still in progress.
“Evonik utilized a third-party contractor for project-specific work at the facility in Mobile, Alabama,” the company said in a statement. “To ensure strategic project goals, Evonik recently terminated the relationship.”
The company employs more than 700 workers, separate from the impacted contract workers, Evonik confirmed.
“Evonik has not laid off employees in connection with this project,” the company said.
It’s unclear if the contract employees will be rehired by a new contractor at the same site, or placed elsewhere.
Evonik manufactures specialty chemicals for products including structural foams for aircraft, amino acids for optimized livestock farming, coating additives for wind turbine blades, and catalysts for biodiesel production.
Federal law requires large employers to file a public WARN notice with the state in advance of mass layoffs or plant closures. Those WARN notices are published by the Alabama Department of Commerce.
The expected job cuts bring Alabama’s tally of employees impacted by mass layoffs and closures in 2025 to more than 2,700 – already surpassing the count for last year.