HUNTSVILLE, Ala. - Remington Arms plans to furlough employees this summer, a company spokesman said Tuesday afternoon.
The extent of the employment freeze at the Huntsville plant wasn't immediately clear. The spokesman said they were working to gather information about how Huntsville employees would be affected. It's also unclear how many people the plant currently employs, but the numbers have fluctuated over the years. The company's current agreement with Huntsville requires them to have 415 employees at the end of 2019. The company has missed employment targets in the past and had to rework its deal with the city.
The mayor in Ilion, N.Y., told CBS affiliate WKTV that the Remington Arms facility there was furloughing approximately 500 employees and shutting down a portion of its production lines June 3-Aug. 12.
WHNT News 19 has reached out to Mayor Tommy Battle's office for more information on the Huntsville plant's future. A spokeswoman for the mayor said she had not heard about furloughs at the Huntsville plant and did not have any other information.
Remington's Huntsville plant opened in 2014 with a long-term goal of bringing in more than 2,000 jobs over a 10-year time frame. The plant received a large package of local and state incentives and initially was moving ahead of their benchmarks and expectations, but later failed to meet job targets.
By February 2018, Remington was entering bankruptcy protection to try and eliminate roughly $700 million in debt.
Last November, the city of Huntsville and Remington reworked their incentive deal to remove the expectation that Remington would have more than 1,000 workers by the end of 2018. Currently, the agreement expects the company to have 415 employees by the end of 2019 and 1,868 by 2023.
In March, the state Department of Commerce confirmed it was reviewing its project agreement with Remington and had disallowed a $3 million cash incentive payment.
Remington also recently refunded about $1 million in incentives to Limestone, Madison and Morgan counties.