Piedmont, Texas — Piedon Coal is shutting down its two coal-fired power plants in the United States and shutting down the electricity to the facility for the first time in the company’s history, a company spokesman said on Monday.
Piedmont said it will stop operating the two units at the Marcellus Shale gas processing plant in Piedonton and the Cargill coal plant in Bandera, Texas, at noon Wednesday, according to a statement from the company.
The shut down of the power plant at the Piedonte plant is expected to cost the company about $4 million a day in revenue and will require the company to reduce its workforce to about 5,500 people, the company said.
The shutdown comes amid an intensifying economic downturn that has affected coal mining in the U.S. and across the world.
The downturn has pushed coal-mining jobs to their lowest level in more than a decade, and coal companies have been forced to lay off millions of workers in recent months.
The company had said last month it would lay off about 3,000 workers, including about 1,000 in Texas, amid the shutdown.
In an interview with The Associated Press, Piedmonco President and CEO John Piedman said the shutdown would be temporary and he was confident that the shutdown wouldn’t have a material impact on operations.
He said the company was looking for the right balance of costs and benefits, and the shutdown of the plants would be the first of its kind.
He did not elaborate on how the shutdown was being handled, or what the financial impact might be.