New England Cuts 2008 Plant Closures 30% Over Last Year

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--In one of those good news/bad news situations, there are 30% less plants targeted for closure this year in New England than the 2007 loss of 23. Unfortunately, when looking forward from January 2008 through the end of the year, a recent analysis of Industrial Info's Industrial Manufacturing Industry database reveals that the region still has 16 plants that have either already closed or are currently scheduled to do so.

Click on the image at right to see 2008 plant closures in the New England region.

In the process of losing the plants, the region, which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, must brace itself for the potential loss of more than 2,600 jobs. New Hampshire is the region's only state to escape unscathed while Massachusetts will close eight plants. Connecticut is set to close three sites, and Maine and Rhode Island will both shed two while Vermont loses one.

When considering the numbers from an industry standpoint, the Pharmaceutical & Biotech Industry, despite -- or actually perhaps -- because of its deep roots in the region, is taking the worst hit as it closes six sites and potentially loses 945 employees (reference: Pharmaceutical Tracker). Industrial Manufacturing is losing four plants, with the remaining facilities sourced out of the Pulp, Paper & Wood (3), Chemical Processing (2) and Food & Beverage (1) industries.

The plants that have or are expected to close are varied in both industry and product. Cumberland Farms (Canton, Massachusetts) shut down its bakery in January in Westborough, Massachusetts, after having operated the site since 1975. Biotech firm Alkermes Incorporated (NASDAQ:ALKS) (Cambridge, Massachusetts) targeted its Chelsea, Massachusetts, plant after ending its partnership earlier this year with Eli Lilly & Company (NYSE:LLY) (Indianapolis, Indiana) to develop inhaled insulin. WestPoint Stevens (West Point, Georgia) will close its nonwoven blanket plant in Biddeford, Maine. The Biddeford site opened in 1899.

Ultimately, not all of the plants will close their doors. Some will be sold, and if within the same sector, many jobs will be retained. Others will be reopened after undergoing renovations to accommodate the new owners, again, replacing some of the lost jobs. Despite the plant closures, there are still more than 2,000 operational plants n the region, as found in the New England Online Plant Directory, with new plants being added as they become operational.

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