A company that makes adhesive labels and branding products will eliminate 170 Fort Wayne jobs when it closes within the next year, but is offering some employees a chance to relocate.
California-based Avery Dennison announced the move Wednesday.
Production will be moved from Fort Wayne to Greenfield, Indiana, and Mentor, Ohio, as the company “consolidates its North American footprint,” the company said.
The Fort Wayne plant is at 3011 Independence Drive. The site produces pressure-sensitive material for label converters and printers.
“The decision to close the Fort Wayne facility came only after a strategic review of a number of options and in no way reflects the dedication or performance of our colleagues at the Fort Wayne facility,” said a statement from Jeroen Diderich, vice president and general manager of the company's Label and Graphic Materials North America division.
“We will work closely with those affected to help make the transition as smooth as possible, including opportunities for transfer, as possible, as well as separation pay and other benefits,” he added.
A large majority of the headcount will be shifted to Greenfield, the company said. The transition is scheduled to begin early in 2021 with the move completed by next October.
Greenfield is about 95 miles south of Fort Wayne.
The Fort Wayne facility is one of 15 in the North American group of the global company.
The company's products include tapes and other bonding solutions for industrial, medical, and retail applications and tags, labels and embellishments for apparel and radio frequency identification tags serving retail apparel and other markets.
Headquartered in Glendale, California, the company employs more than 30,000 employees in more than 50 countries.
Reported sales in 2019 were $7.1 billion.
However, the company in stockholder communication reported second-quarter sales declined nearly 15% to $1.53 billion and third quarter sales were expected to decline of 5% to 7%.
In that communication officials also said the company had experienced some decline in demand for its products because of the pandemic but still retained “ample liquidity” and strong annual free cash flow.
“Our continued success ... depends on our state-of-the-art manufacturing, a robust and efficient supply chain and continuous innovation,” Diderich said in Wednesday's statement.
“As an industry leader, we will continue to invest in leading technology to stay ahead of the market.”