Lehman Trikes, which was started in Alberta, has decided to close its only Canadian plant due to rising gas prices.
Lehman, which is based in Spearfish, South Dakota, makes trike conversions for large touring-style motorcycles. Its Westlock plant, about 80 km north of Edmonton, makes fibreglass components.
Lehman boss Dan Patterson said the trike company has enjoyed "26 per cent revenue growth over the last year," but needs to improve its profit for the "benefit of all shareholders."
Chief financial officer Tim Kling told CMG that the Alberta shutdown results from increasing costs of transporting their manufactured products from the Westlock plant to the main assembly plant in Spearfish.
Harley-Davidson’s decision to build its own trike in 2009 has nothing to do with the closure, he said. Lehman’s contract with H-D to produce trike conversions has not been affected.
Kling said the company is discussing "today" how and when to shut down the Alberta plant.
Shares in Lehman rose in value after the announcement.
