Business and Economic News

Smith Foundry announces shutdown

A person holds a large yellow sign at aprotest
Evan Mulholland, a director at the Minnesota Center for Environmental Advocacy, holds a sign outside the Smith Foundry in Minneapolis during a protest on Nov. 10.
Ben Hovland | MPR News

Over a year after federal regulators launched an investigation into Smith Foundry, the facility announced it’s shutting down in August. 

The Minneapolis iron foundry announced the closure last week, saying environmental regulations will make it impossible to get a new permit.

Community members who advocated for the shutdown are calling it a win for environmental protections in the East Phillips neighborhood. 

“It’s truly a breath of fresh air,” East Phillips resident Luke Gannon said. “It’s a huge environmental justice win for East Phillips and all of the neighboring communities and residents.”

The foundry had announced last month that it would partially shut down, following a settlement with federal regulators over alleged pollution law violations. The foundry was also required to apply for a new permit from the Minnesota Pollution Control Agency (MPCA). 

In the foundry’s announcement of its closure, owner Adolfo Quiroga said the agency placed stringent requirements on the permitting process that the foundry couldn’t meet.

“We are left with no other choice but to shut down the foundry,” Quiroga said in a statement. 

Foundry management said it has shut down its furnace and will stop remaining operations by Aug. 15, eliminating nearly 50 jobs. 

The foundry, which has been operating in the neighborhood for more than a century, was purchased by Zynik Capital in December 2022. Quiroga said state regulators did not warn owners of potential environmental issues when the company took on the facility and its existing air permit. 

“They never informed us they had any concerns about the foundry, its operations, or its existence in the neighborhood,” Quiroga said. “The MPCA is making unreasonable and unjustified demands through their arbitrary and opaque air permitting process that are essentially forcing us to close the furnace sooner than expected.” 

The MPCA said the foundry informed regulators that it would shut down rather than submit further information to apply for a permit. 

“The Minnesota Pollution Control Agency’s long-standing focus is to protect the environment and ensure the health and wellness of all Minnesotans, and we expect all companies in Minnesota to follow our environmental laws,” the MPCA said in a statement. 

Local environmental advocates had been pressuring the state to shut the foundry down – especially since last year, when federal regulators reported elevated particulate matter and lead pollution from the foundry, in violation of its permit and federal air quality standards. 

In a series of rallies and community meetings, advocates demanded to know why state regulators hadn’t stepped in sooner in violations that the EPA said went back to at least 2018.

Tania Rivera Perez is the program manager at Circulo de Amigos Childcare, a day care center across the street from the foundry. She says staff and kids at the center regularly noticed burning smells in the building, and when passing by the foundry on the Midtown Greenway.

Often, she says, teachers would have to keep kids inside because of pollution levels indicated on air quality monitors in the building. That posed a barrier for the school’s outdoor learning focus.

The news that the foundry was shutting down came as a welcome surprise. 

“I was overwhelmed with a lot of emotions,” Perez said. “Now we’re able to have a different future for this community that does not involve pollution and illnesses and toxic air.” 

Community advocates say they’re turning their focus to the next steps: advocating for resources for foundry employees who are out of work, and for a transition at the site. Perez said she hopes the neighborhood will have a chance to chime in on what they want to eventually take the foundry’s place.