HUNTSVILLE, Ala. -- Chesebrough-Pond's Inc. announced Tuesday that it plans to phase out manufacturing and distribution operations in Huntsville over the next several months, putting 400 people out of work.
Ronald Feller, vice president of manufacturing for Chesebrough's Prince Matchabelli division, said the company plans to cease manufacturing by the end of the year and will stop its distribution operations by April 1988.
'This decision is purely an economic one,' Feller said.
The company assembled its employees on the loading dock Tuesday morning and told them of the decision.
'Our Huntsville employees, the community and the state of Alabama have been extremely cooperative and supportive of Chesebrough-Pond's, which makes this decision all the more difficult. Unfortunately, the economics of our cosmetics business will not support the Huntsville plant,' Feller said.
In June 1986, Chesebrough-Pond's officials announced plans to close the plant and divide its production between Jefferson City, Mo., and Clinton, Conn., at company headquarters.
Since then, the company has been sold to Unilever, a European company with operations in London and the Netherlands. Unilever executives have since been reviewing their options of expanding or closing the plant.
'The chamber worked on this project last year to save it and we have been working on it this year in concert with Governor (Guy) Hunt,' said Huntsville chamber general manager Guy B. Nerren.
'We've done everything humanly possible,' Nerren said. 'I don't think anyone can save it this time.'
The Huntsville plant, built in 1974, currently manufactures cosmetics, skin treatment products and fragrances.
'I'm sorry to say that despite all of these efforts we have been unsuccessful in finding a way to keep the plant open,' Feller said. 'It is a matter of having excess manufacturing capacity at several plant locations, including Huntsville, as well as a product mix that is uneconomical to produce by itself.'
Approximately 400 full-time employees will be affected by the closing. All employees will be provided with severance benefits and will be given assistance in finding other positions, the company said.
The Huntsville Times said the company may move the operation to Puerto Rico.
