Rheem closes Georgia plant; moves work to Fort Smith, Mexico

Faced with a 40% decline in business, Rheem officials announced Friday they would close a plant in Milledgeville, Ga., and consolidate the operations there at the company plants in Fort Smith and Nuevo Laredo, Mexico.

The move eliminates 1,200 jobs from a small community southeast of Atlanta.

According to published reports from local media, Rheem laid off about 700 people at the Milledgeville plant in two waves in July and October. But in January, the company announced that everyone was being recalled to work.

But it didn’t last, and the head of the local union, Jonas Young, had harsh words for the company.

“They had laid the employees off without proper notice of closing. They masquerade a plant closing under the facade of a mass layoff. They had to bring the employees back. They brought back 750 employees to tell them they’re closing the plant,” Young said.



Rheem released a statement saying any orders remaining at the Milledgeville plant will be consolidated into other plants in Fort Smith and Nuevo Laredo.

“This is a very difficult decision for us, and we understand it will have a tremendous impact on our employees, their families and the Milledgeville community,” Chris Peel, Rheem’s chief operating officer, said in a statement. “Unfortunately, the precipitous drop in new construction and the global economic crisis show no signs of short-term recovery, a situation which has forced us to take this difficult course of action.”