SEATTLE (Recycling Monster): RePower South recycling plant in Montgomery announced that nearly two dozens of workers will go jobless, due to a temporary restructuring plan.

According to Brian Gilhuly, vice president of RePower South Montgomery, the restructuring plan proposes to restrict its operations, which in turn has led to the layoffs. He also cited other contributing factors including escalated operational costs, falling commodity prices and the lack of adequate support from the city. Furthermore, he thanked all the affected employees for their hard work and dedication over the past several years.

RePower South has a 25-year lont-term contract with Montgomery City to process the waste collected by the City’s Sanitation Deapartment. It has invested over $14 million into the facility. The facility has recycled more than 40 million pounds of recycled commodities over the past two years.

Meantime, Mayor Steven Reed pointed out that the recycler had been unable to generate profit under their current operating structure, even after subsidizing its operational expenses to the extent of around $2 million. This has prompted the administration to cut ties with the current recycler and explore new opportunities for recycling.