Kohler, WI — Kohler Co. announced that it is closing its Canac kitchen cabinetry business, citing the United States’ weak housing market, recent construction softness in Canada and escalating costs for raw materials and logistics costs as the driving reasons for the business closure.

A full business closure is anticipated by the end of 2008, according to Kohler, headquartered here.

Canac has been experiencing a decline in orders “for some time,” according to Kohler, and “competes in an already crowded and price-sensitive kitchen cabinetry marketplace that itself has been in decline.”

Canac’s primary customers are in North America, including major builders in the new home construction market and developers in the multi-family sector.

“We explored all possible business options, with our first preference being the sale of Canac assets to an interested buyer. However, that option never garnered any serious interest with the potential buyers,” said Canac president Ralph Howard.

“The last option we considered was closing the Canac business altogether, but unfortunately that is the reality we are now facing,” Howard added. “We realize this decision impacts our associates significantly. It was a very difficult decision for us to make.”

Kohler, which acquired Canac in 1996, stressed that its decision to exit the kitchen cabinetry business is based “purely on the sub-par performance of its Canac business.” The company’s other brands participating in the housing industry, including Kohler plumbing, Sterling plumbing and Robern mirrored bathroom cabinetry, are not impacted, according to the company.

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