Neenah, WI-based flexible-packaging converting giant Bemis said Wednesday it will close its factory in Newark, CA, and idle 124 workers, reports the San Jose Mercury News.
The Newark factory makes packaging primarily used for fresh-cut produce as well as for condiments. Bemis wants to shift production from smaller plants such as the one in Newark to a reduced number of factories that each tend to be larger and employ hundreds of people.
"This is part of a larger optimization initiative at Bemis," said Kristine Pavletich, a spokeswoman for the company. "These plans are expected to substantially improve efficiencies and reduce operating costs. This decision has nothing to do with the quality of the location, the work being done there or the processes in Newark."
However, East Bay labor officials said they were told by Bemis that overseas competitors had begun to squeeze the packaging manufacturer.
The workforce board has begun to gear up to help the 124 displaced Bemis workers find new jobs or careers. The employees are represented by the Teamsters union.
Manufacturing that was being conducted in Newark is already being shifted to other Bemis facilities, according to a letter this month issued by Greg Derhaag, president of the Milprint division of Bemis.