photo by David Snow

The Demopolis New Era plant is one of two that will either survive consolidation or be closed in 2010.

New Era consolidating plants

By David Snow (Contact) | Demopolis Times

Published Saturday, November 21, 2009

The New Era Cap Company announced plans to consolidate its three manufacturing operations into one plant. On Thursday, it announced the closure of the plant in Jackson, leaving the plants in Demopolis and Derby, N.Y., to ponder their fates.

“(Thursday) was a devastating day for all of New Era and the whole New Era family,” said Demopolis plant manager Alvin Williams. “Losing a sister plant here in Alabama is going to be difficult.”

Williams felt confident that the plant in Demopolis has a good chance to survive the consolidation.

“I feel extremely good that we have a great chance to survive,” he said. “I have to look back at the support that we have enjoyed at the state level and particularly from the city and the commitment that it made to New Era 10 years ago when New era came to this community.

“I cannot tell you how many phone calls that I have received over the last 24 hours expressing that same sentiment, that same support from city leaders. I know they will be there to help us reach a successful conclusion to this.”

According to a release issued by New Era headquarters in Buffalo, N.Y., the move was “a result of the global recession and a significant change in consumer demand for our products.” New Era spokesperson Paul Gallagher added that the significant decline in demand for the custom domestic product also led to the company’s action.

“This is a very difficult decision for us,” the release stated, “but in the face of significantly reduced consumer demand, we feel we have no option but to restructure our manufacturing operations. There is simply not enough consumer demand to support three manufacturing plants in the U.S.”

The release also stated that the company had planned to close the distribution facilities in Mobile during the second quarter of 2010. Gallagher said that the Jackson plant would close in mid-February 2010, while the second plant would be closed during the second quarter of 2010.

“We are sitting down to discuss this with the International Brotherhood of Teamsters, who represent the workers in Jackson, sometime next week,” Gallagher said. “The next step is that we will sit down with the Communication Workers of America (CWA), who represent the workers in Demopolis and Derby, N.Y., to determine which of those two plants will remain open.”

According to New Era, 355 employees work at the Demopolis plant, 322 at the Jackson plant and 334 in Derby. Those figures include those who have previously been laid off.

“We have a great working relationship with the CWA,” Williams said. “We’ve got a great staff and a great workforce, and I’ve got a great commitment from the city of Demopolis. From that perspective, I feel very strongly that we have a great chance.”

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