A baby formula manufacturing plant that employs 420 people in Georgia, Vt., will close, according to Perrigo, the Ireland-based company that runs it.
Brad Joseph, vice president of global investor relations and corporate communications, said in a prepared statement that the company will phase out production and will close the plant in 2027.
“For decades, our Vermont facility has played a critical role in feeding millions of babies,” the statement said. “However, due to its age and evolving regulatory requirements, long-term maintenance and investments are not cost-effective. Perrigo considered multiple options for the Vermont facility, which unfortunately are not viable.”
Perrigo says on its website that it’s the third-largest maker of baby formula in the U.S.-Canadian markets. Its Georgia plant is situated about 40 miles south of the international border.
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Tim Smith, executive director of the Franklin County Industrial Development Corporation, said Perrigo had considered expanding its Georgia plant before concluding that the investment would be too expensive.
“They focused on a Wisconsin site instead,” Smith said.
Early in the pandemic, Perrigo had trouble meeting demand for its 17 brands of formula. In 2022, the company purchased a Nestle plant in Eau Claire, Wis., investing $170 million there.
Smith added that many displaced workers should be able to secure new jobs with other local manufacturers that have been trying to find employees. He noted that the region went through a smaller loss in 2013 when the Energizer plant in St. Albans closed, putting 70 people out of work.
“At the time, Mylan Technologies was hiring, as was Vermont Precision Tools [in Swanton],” Smith said. “Many of those employees were absorbed into the economy.”
Since then, the unemployment rate has plummeted, and many manufacturers have said a lack of workers is holding back their growth. Other large Franklin County manufacturers that are hiring include Ben & Jerry’s, which has an ice cream plant in St. Albans; the St. Albans chocolate maker Barry Callebaut; and Franklin Foods in Enosburg.
“I am confident that all these people will have more than enough opportunity to find jobs in the region,” Smith said of the Perrigo workers.
A Perrigo spokesperson did not return Seven Days’ calls and emails Friday.
Another factory might take Perrigo’s place. Smith noted manufacturing space is in very short supply in Franklin County.
“We’re optimistic there will be be a buyer, maybe not for baby formula, but maybe a value-added food industry,” he said.