Nestle Waters is closing its Macon County plant in Red Boiling Springs, Tennessee, citing heavy competition in the water bottle industry. Nestle said in a statement that employees have received separation packages. It is unknown if some employees will transfer to other sites or if the manufacturing complex will be sold, according to the Tennessean.
The plant closure is expected to hurt the city as 43 people from Red Boiling Springs work for the facility. The Tennessean reports that the city received about $10,000 a year from sales of natural gas and other supplies to the plant. The city's Mayor, Joel Coe, said that it has struggled to retain manufacturing sites since NAFTA was passed 30 years ago.
"While we are confident that this action will allow us to better serve our customers and make the company stronger, we recognize the impact that this decision will have on our Macon County associates and their families, and the Red Boiling Springs community. We will support each impacted associate with separation packages," says Daniel Disney, Red Boiling Springs factory manager. "We are grateful to all of our Red Boiling Springs associates whose hard work, skills and commitment to quality have made our brands loved and trusted by consumers across the country. We are also appreciative of the many residents and organizations in Red Boiling Springs with whom we have been proud to collaborate on a variety of important community initiatives."