Demopolis’ New Era industry to close

Published 3:00 pm Wednesday, January 27, 2010

The New Era Cap Company today announced a tentative agreement with the

Communications Workers of America (CWA) to retain New Era’s Derby, NY plant

as the company’s sole U.S. manufacturing facility. A final agreement is

Email newsletter signup

contingent on the Derby employees’ ratification of a new contract, which

represents operational efficiencies and cost savings.

If the agreement is ratified, New Era said it will close its plant in

Demopolis sometime in the second quarter of this year.

Today’s announcement follows New Era’s decision last November to consolidate

its domestic manufacturing operations in the wake of significantly reduced

consumer demand for its U.S-made products. The company has previously

announced the closure of its Jackson, Alabama plant.

“This was an incredibly difficult decision to make,” said Christopher Koch,

CEO of New Era. “Both our Demopolis and Derby plants are highly efficient

and have made enormous contributions to New Era’s success over the years. In

the end, our decision to keep Derby open was based largely on the need to

retain our most senior and experienced unionized employees.”

The Derby ratification vote is scheduled for Feb. 2. There are currently 351

employees in the Demopolis facility and 330 employees in the Derby facility.