The Coleman Co. sleeping bag plant will close June 15, eliminating 111 jobs, and the operation will consolidate with another in Lake City, S.C., Sunbeam Corp. announced.
Sunbeam, which bought Coleman in March, said it expects to save $2.5 million in the consolidation.Coleman Co. has manufactured sleeping bags in Cedar City since 1967.
"This is a big disappointment to me," said Terry Wilson, plant general manager. "I've been with this company for 28 years. About the only thing I can say is that this decision had nothing to do with the caliber of employees in this plant. We have a wonderful work force here."
Mari Hope, a managing director of a New York public relations firm that represents Sunbeam, said workers will get a lump sum severance package. Those with less than five years service will receive six weeks pay, those with five to 10 years of service will receive three months pay and those with 10 or more years will receive six months pay.
Hope said Sunbeam will continue to provide employees with medical and dental insurance for six months after the closure.
The company also will set up an outplacement service center at Southern Utah University, which will give displaced employees some additional computer training, help them put together resumes and assist in their job searches.
About a million sleeping bags were manufactured in the 156,000-square-feet building each year.
Sunbeam, based in Delray Beach, Fla., makes home appliances and consumer products.
Sunbeam acquired Coleman along with two other makers of durable consumer products - Signature Brands USA Inc. and First Alert Inc.