Coca-Cola delays plans to shut down Northampton plant until end of 2023

By EMILY THURLOW

Staff Writer

Published: 02-21-2023 5:13 PM

NORTHAMPTON — Coca-Cola, the city’s largest manufacturer, has pushed back closure of its bottling plant in the Northampton Industrial Park until December.

“We still plan to close the facility, but it will continue operating at least through the end of 2023,” Ann L. Moore, a spokesperson for the Atlanta-based company, said in a statement. She did not elaborate on why the plant will stay open longer than anticipated.

Coca-Cola initially announced in August 2021 that it would close the Northampton factory 45 Industrial Drive this summer. At the time, there were 319 people employed at the site. Then-Mayor David Narkewicz said the closure was tied to a corporate restructuring plan that will also shut down a plant in Napa Valley, California.

Like the Northampton facility, Coca-Cola’s California plant is currently still operating but is also going to close later this year, Moore said.

State Rep. Lindsay Sabadosa, D-Northampton, called the delayed closure of the Northampton plant “good” news. Coca-Cola is among the city’s top employers behind Smith College, which employs more than 1,500 people, and Cooley Dickinson Hospital, which employs more than 1,300 people. The city of Northampton employs some 1,800 people in its school and city departments.

“The (Coca-Cola) facility employs over 300 people and plays an important role in our community,” Sabadosa wrote in an emailed response. “While I am aware that the company views the closure as part of a broader restructuring plan, it does feel that the pandemic showed the importance of redundancy to avoid production shortages.”

Coca-Cola North America now has 11 company-owned facilities. Three facilities in Michigan, Missouri and Texas have transitioned to Refresco, which was announced at the same time Coca-Cola went public with its plans for the Northampton plant, said Moore. Refresco, which is based in the Netherlands, claims to be the largest independent beverage bottler in the world.

Coca-Cola bought the former Mid-Atlantic Canners Association facility in Northampton in 1995.

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The plant underwent a 13,000-square-foot expansion, completed in 2011, that cost $50 million and added 100 jobs. Today, the 470,000-square-foot Coca-Cola plant bottles non-carbonated products including Minute Maid, Vitaminwater, Powerade and Honest Tea.

The plant is the city’s largest water customer and one of its largest taxpayers. According to city tax records, the Coca-Cola property is assessed at $17.7 million. The company pays about $306,000 in annual property taxes.

In March 2010, Coca-Cola benefited from a 13-year agreement with the city that reduced its tax burden on the 2011 expansion by 50% for the first seven years, then 25% for the remainder.

That agreement, called a TIF, expires this June. The city also spent $375,000 to increase capacity at the Bradford Street sewer pump station in response to Coca-Cola’s needs.

Sabadosa said that if the plant does eventually close, “it is critical that Coca-Cola respect its commitment to help all its employees find new jobs,” as the company is currently hiring for 22 positions.

Moore said the Northampton plant will continue to fill open positions as needed.

“We are being transparent with applicants regarding the plant closing, and we are noting that severance will be provided,” she said. “As the closing date approaches, we also will work with third-party co-packers and other system companies to proactively identify job opportunities at surrounding locations for impacted employees.”

Emily Thurlow can be reached at ethurlow@gazettenet.com.]]>