Third Coast Industries will not rise from the ashes of a devastating fire, after all.
The Friendswood, Texas, lubricant blender, which said six weeks ago that it intended to rebuild the plant that was destroyed in the May 1 blaze, told Lube Report last week that it has reversed its decision and plans to exit the lubes business.
It was clearly my intent to rebuild, President Tim Elliott said. But the other shareholders voted me down.
Third Coast Industries, a division of Third Coast Packaging Inc., blended automotive and industrial lubricants that it sold in 50 countries, mostly under its own brands. It blended a million gallons per month and employed approximately 100 people until the fire, which destroyed a 150,000-square-foot warehouse and 74 tanks, leaving behind just 19 tanks and a maintenance building.
Operations resumed with a skeleton staff in late June, blending in tanks that were left standing and packaging at a leased facility nearby. After the decision to cease operations, Third Coast shipped its last order Thursday and let go the remaining 20 employees. The company had been in the lubricants business since 1987.
Elliott said Third Coasts insurer dragged its feet on paying the companys claim, and its bank initially threatened to seize its accounts against lines of credit.
Its criminal the way they behaved in this situation, he said. Still, he added that those problems, which have now been resolved, were not the cause for the decision to close. Rather, the fire convinced his fellow shareholders that it was time to exit the lubricants industry.
Basically they decided they just didnt want to be in this business any longer, Elliott said, noting that he was the only shareholder working with Third Coast Industries. I did not agree with the decision, but I understand why it was taken.