A plastic bag manufacturer with deep roots in Orillia, Ont., has temporarily laid off 118 employees, the latest sign of strain on the city’s manufacturing sector amid the ongoing Canada-U.S. trade dispute.
EcoPoly/Polyethics, which operates two facilities in Orillia and still employs more than 200 people at those locations, confirmed the layoffs through marketing manager Eda Dereli. “We have made the very difficult decision to temporarily lay off 118 employees,” Dereli said, describing the situation as complex. She said bringing the workers back is the company’s top priority.
Polyethics is owned by Derek Rynard, a third-generation Orillian, and has operated in the community for 35 years. Dereli said the company’s headquarters and roots remain in Orillia and that it remains committed to Canadian manufacturing.
Expansion Into the U.S.
Despite the layoffs at home, Polyethics has moved to expand into the United States. According to JobsOhio, the company will establish its first U.S. manufacturing location in Antwerp, Ohio, investing more than $41 million and committing to hire 250 people over several years.
Dereli said the Ohio facility would allow the company to serve U.S. customers directly while freeing up capacity to build more Canadian business at its Orillia plants. She said years of strong customer demand had kept Canadian production sold out, allowing the company to invest in technology previously only available in the U.S., and that it can now produce bags comparable in quality to major name brands domestically. She said the opportunity now is for more Canadian businesses to source such products at home.
Tariffs and the Funding Gap
Dereli said that while a wave of “elbows up” sentiment favouring Canadian-made goods has helped generate new interest, it has not been enough to offset the impact of the trade war. She said winning new customers to replace business lost to tariffs takes far longer than losing it, leaving a gap she said government support has not filled.
“The government has promised support but that promise has not translated into the assistance we need,” Dereli said, adding that despite securing new sales, neither government assistance nor bank financing has been available to bridge the transition. She said employees are feeling the consequences of that shortfall, and that the company’s focus is on bringing secured orders into production so workers can return.
Broader Pressure on Orillia’s Economy
The Polyethics layoffs add to a string of recent setbacks for Orillia’s economy. A day earlier, Orillia Soldiers’ Memorial Hospital announced it was cutting 17 jobs tied to changes in its renal/dialysis program and the Ontario Telemedicine Network. In mid-September, city council was told the municipality would lose a major employer representing close to $20 million in payroll, after sources indicated eCapital planned to relocate out of Orillia, citing safety concerns, though the company itself did not confirm the move. In late September, Leadbetter Foods closed its beef operation in the city, costing more than 20 jobs.
Ryan Lay, the city’s manager of economic development, said the losses affect people the community knows personally. “These are people in our community, people we see at the grocery store… it’s really difficult to see,” he said. Lay said the city’s priority is connecting laid-off workers with employment service agencies and staying in touch with local employers to offer support where possible.
Lay attributed much of the strain to economic pressures originating outside the region, pointing to tariff issues and the broader Canada-U.S. trade war. He said some local employers have been heavily affected while others have not, but cautioned that conditions could shift quickly. “There’s so much uncertainty right now,” Lay said, adding that the city would do what it can to ease the burden on those affected.
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