Nestlé sets closing date for 75-year-old Freehold plant
Many face layoffs; production expected to move to Mexico
FREEHOLD – Nestlé will close its manufacturing plant here in November, company officials said Friday, a move that spells the end of a business that has been a mainstay in town for 75 years.
Nestlé said the facility, where it makes Nescafé’s freeze-dried coffee Taster’s Choice, was old, inflexible and no longer viable. It sets the stage for layoffs for many of its 227 employees, who said they expected production would move to a newer plant in Mexico.
“It’s a lot to take in,” said Ryan Post, 45, of Berkeley, who has worked at the plant for 13 years in a job that helped him raise two sons. “We knew it was coming. We had a feeling it was coming. We always held out hope that they would try to save it, but now that we have a definite (closing) date, it’s going to hit a lot of people hard.”
The announcement comes six weeks after Nestlé said that it needed millions of dollars in concessions to continue to operate in Freehold. Negotiations with its labor union ended on Tuesday without an agreement. And labor officials emerged from the meeting with an air of resignation.
The closure marks the end not only for Nestlé, but also Freehold’s once-thriving manufacturing sector. The borough long was home to companies that in recent years have gained a new measure of fame in songs and shows by Freehold native Bruce Springsteen. His
song “My Hometown” alludes to the closing of the Karagheusian rug mill, where his father once worked. The building has since been converted into an affordable-housing apartment complex.
Among Freehold’s manufacturers was Nestlé, whose coffee production made for an aroma that spread throughout town.
“The smell was comforting because when you smelled that, it meant people were working,” said Kevin Coyne, a Freehold journalist and historian. Its closing “is a huge hit for the town.”
Employees were called to a meeting at the Radisson hotel in Freehold Township at 10 a.m., where they were notified the last day of production would be Nov. 17. They left about a half-hour later, disappointed by the company’s decision and wondering what they would do after the plant closes.
“I do believe that there was another route to go about this,” said Nazar Mykhaylenko, 33, of Woodbridge, who joined the company five years ago and works in instrumentation and process control. “I do believe there is opportunity for our plant, and if they had chosen to invest in our plant and our American jobs, it would have been successful.
“We still came in every day, did our best, put in our blood, sweat and tears, and then corporate turns around and says, compared to Mexico and Brazil you’re not competitive,” he said.
In a statement, a company spokesperson said Nestlé made what it said was a difficult decision to close after meeting with local and state leaders, as well as the employees’ union, Teamsters Local 11. The company would work with the union to provide a comprehensive separation package to ease workers’ transition into their next career.
“We’ve made significant investment in Freehold over the years, but the factory has many challenges, specifically its age and limited operational flexibility. It would cost tens of millions in additional investments to make it viable,” the spokesperson said. “How consumers drink coffee is constantly evolving and our manufacturing network must be set up to meet the needs of consumers now and long into the future.”
The 500,000-square-foot Nestlé plant straddles the boundary of Freehold Borough and Freehold Township and operates around the clock. Workers there make Taster’s Choice coffee that is found in supermarkets nationwide. And they make as much as $38 an hour with health and retirement benefits.
Nescafé built the factory for $1 million and opened in 1948, producing instant coffee that gained popularity among U.S. soldiers during World War II and would continue to find new customers as Americans moved to the suburbs after the war.
The building was touted as a stateof-the-art facility that featured the latest in efficiency and design. It was constructed using cinderblock and yellow brick, And the site included a newly installed double railroad spur that could accommodate 26 box cars at one time.
Contact Michael L. Diamond at mdiamond@gannettnj.com.