Plastic container fluorination firm Inhance Coating Technologies LLC is closing its Australian operations, citing difficult market conditions.
"Our Australian operations has experienced difficult market conditions and a tough operating environment over the last several years, and therefore, we have decided to wind down our operations," the Houston-based company said in an Aug. 22 email. "We have the capability and capacity to treat customer wares at any of our other global locations."
Inhance has been embroiled in a fight with the U.S. Environmental Protection Agency over whether its coating technology leaks per- and polyfluoroalkyl substances (PFAS) from plastic containers.
The EPA in December 2022 ordered the company to shut down or modify its manufacturing operations, but Inhance prevailed in a lawsuit against the agency. EPA has since said it is pursuing other regulatory avenues.
Inhance, for its part, said the decision to close its Australian operations was based entirely on market conditions.
"The closure of our Australian operations was solely a business decision driven by market conditions," the company said.
An Aug. 14 letter from the managing director of its Sydney-based Australian operations, Dom Maisano, to customers said the decision was made "for business reasons, determined by our USA parent company" and that the closure would "commence immediately."
"Unfortunately, we will no longer be able to accept any further orders as our remaining production is fully scheduled," the letter said.
"The consequences of the closure for both our customers and our Australian employees are very significant and I am very saddened by this. I would like to extend my deepest appreciation for your support throughout our 35 years in business."
Australia has been one of the company's regional centers, with others in Brazil, Germany, Mexico and the U.S. it has about 20 locations worldwide.