The End Of New Era

Almost four hundred people will be looking for a job next year after a big announcement at the New Era Cap Company.

The company that makes caps for Major League Baseball is shutting down two facilities in South Alabama. New Era announced on Thursday that it will close its Jackson, Alabama plant early next year. That plant employs 322 people.

The company is also closing its distribution center in Mobile. That means 70 more people will lose their jobs. Company officials say demand for its products has dropped.

Company officials plan to consolidate and keep one plant open-- either the one in Demopolis, Alabama or in Derby, New York.

Below is the New Era statement sent to News 5.

NEW ERA CAP STATEMENT ON U.S. MANUFACTURING OPERATIONS CONSOLIDATION
As a result of the global recession and a significant change in consumer demand for our products, we are being forced to consolidate our U.S. manufacturing operations from three (3) plants into one (1).

We are currently planning on closing our Jackson production and Mobile distribution Alabama facilities. We will be meeting with the Teamsters Union who represents the employees at these locations. The Jackson facility is projected to be closed in the first quarter of 2010 and the Mobile distribution facility in the second quarter of 2010.

We will also be meeting with representatives of the Communications Workers of America (CWA) to determine which of our two other plants, Derby or Demopolis, will remain open. The second plant is projected to be closed in the second quarter of 2010.

This is a very difficult decision for us 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 (3) manufacturing plants in the U.S.

We recognize the significant impact this decision will have on our employees and the communities where our plants are located. Therefore, we are committed to doing everything we can to assist our employees through this difficult process and to support the affected communities.