Bonnell Aluminum is set to close the site by the end of September this year, said its owner Tredegar Corporation.

The plant employs 146 people and had sales of $38M in 2010 but had been operating at a loss for several years.

Tredegar said it would cost about $8M to close the site down, including accelerated depreciation on fixed assets of $4M, severance-related charges of $1M and other shutdown-related charges of $3M. Other shutdown-related charges are made up of equipment transfers and plant shutdown charges.

Duncan Crowdis, president of Bonnell Aluminum, said prospects of a recovery in Kentland’s core market of construction and residential building were a long way away, hence the reason to close the site.

Bonnell Aluminum employs 825 people at three production facilities in the USA.