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New Era Weighs Future Of WNY Plant

 Dave McKinley     3 months ago
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 New Era Cap Co., Major League Baseball's supplier, is consolidating its U.S. manufacturing operations from three plants into one.

The Buffalo-based headwear maker says it will shut down its 322-employee Jackson, Ala., facility by February.

Spokesman Paul Gallagher says a decision on which of the other two plants will go -- either Demopolis, Ala., or Derby, NY will come after discussions with the workers' union. The Demopolis plant has 350 employees and there are 334 in Derby.

 Company President Pete Augustine told 2 On Your Side the recession is primarily to blame for the company's need to cut back, as consumers closely guard their disposable income.

"We're a higher priced item out there and we certainly see consumers struggling with their purchase decisions. And the retail environment is very difficult. We're seeing a lot of independent (stores) going out and they were some of the primary supporters of the products made in our U.S. facilities,"
Augustine said, while noting New Era's high quality, authentic team caps generally retail from between $20 to $30.

Augustine said several factors will be looked at to determine which plant will stay open, including cost efficiency and the quality and on-time delivery records of each plant.

"The Western New York community can't afford to lose 300 plus jobs," said Evans Town Supervisor Francis Pordum, in whose town the Derby plant is located.

Pordum told WGRZ-TV he's already spoken with New Era CEO Christopher Koch to try and convince him keep the manufacturing operation here, and to offer whatever assistance he can.

US Senator Charles Schumer also had a conversation with Koch.

"I said I would do whatever I could to assist the company and urged him to keep the plant operating in New York," Schumer told 2 On Your Side via satellite from his office in Washington DC.

The Koch family began the company in Buffalo nearly 90 years ago and Pordum thinks, based on his conversation with Koch, that the Western New York plant might have an advantage in the decision on which plant will remain.

"I know what's in his heart, and where he would like it to go ...he's a Town of Evans resident ...so they have a history here, their plant started here and I think he has a general concern for our area. I think that's something that rests good for us," Pordum said.

 

 

 

 

 

 

 

WGRZ-TV, wgrz.com, Associated Press


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