Prime shutters Berwick facility, 150 jobs affected
Prime Tanning Co. said today it will shut down its Berwick leather finishing facility, affecting 150 workers, and consolidate its operations at its Hartland facility.
Prime acquired Irving Tanning Co. in Hartland in August 2007 and has been working on the consolidation there since November 2007 when it acquired Milwaukee, Wis.-based Cudahy Tanning. The company closed the Cudahy facility in May. The shut down in Berwick will affect 150 workers, but the company said in a press release many of those would be transfered to the Hartland facility where produciton levels will increase. According to a press release from Gov. John Baldacci's office, the company plans to redirect roughly 75 employees to Hartland.
Prime CEO Robert Moore said in the release that "unprecedented increases in the cost of energy and chemicals and the general economic slowdown" have had a negative impact on the business and expedited the consolidation process. "These unforeseen developments have hastened our need to eliminate excess costs and overhead," he said. "And our success as a company depends upon our ability to act decisively to achieve that result."
Prime announced in late March that it will merge with Shanghai Richina Leather Co. Ltd. to form Prime Leather International. The merger is expected to close in the fourth quarter of this year. (Read about the merger in "Prime cuts", published in the April 21, 2008, issue of Mainebiz.)
Mainebiz web partners
Most Recent
Most Recent
Comments