Restructuring: Hundreds of workers to lose jobs as Coca-Cola shuts plant 2023

*Mayor David Narkewicz says the development will be a major economic loss for Massachusetts as the $17.7million Coca-Cola bottling plant is the city’s largest manufacturer, water customer and taxpayer

Emmanuel Akosile | ConsumerConnect

Though the conglomerate’s plant is regarded as the city’s “largest manufacturer, water customer and taxpayer”, The Coca-Cola Company has announced plans to shutter a Massachusetts bottling plant, in the United States (US), in summer 2023.

It was gathered that the imminent closure of the bottling plant in the location will leave its 319 employees to find new jobs.

The global beverage giant Wednesday, August 4, 2021, announced plans to shut the Northampton plant, as well as sell facilities in Michigan, Missouri and Texas all in the United States (US) to Refresco, which the company says are unrelated, Daily Hampshire Gazette report said.

The company in a statement said: “After careful consideration, The Coca-Cola Company has decided to close our production facility in Northampton, Massachusetts.

“We did not make this decision lightly, and are grateful to have had the opportunity to have been a part of the Northampton community.”

In his comment on the imminent closure of the plant in his domain, Massachusetts Mayor David Narkewicz Thursday said that the development would be a major economic loss for the city.

Narkewicz disclosed that the affected plant is the city’s largest manufacturer, water customer and taxpayer.

The property is evaluated at $17.7 million, according to city tax records, and the company pays about $306,000 in annual property taxes.

The company, according to report, has benefited from a 13-year tax increment financing agreement with the city that lowered taxes by 50% for the first seven years and by 25% for the remainder. The agreement expires in summer 2023.

Mayor Narkewicz also stated that representatives of the beverage company informed him that the closure is tied to a restructuring plan that will also close a facility in California.

“There were significant investments by the state and the city to keep them here and help them expand.

“Northampton is caught up in a larger model of corporate restructuring,” the Mayir added.

Meanwhile, State Representative Lindsay Sabadosa, D-Northampton, remarked that the announcement of Coca-Cola bottling plant closure is “both surprising and disappointing, particularly at a time when there has been so much focus on getting people back to work” in the US.

The lawmaker said: “I will be curious to hear why a company whose revenue grew 42% last year is closing a location that has long been an important part of the community, a community that has worked hard to accommodate their needs.”

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