US-based supplier of high-end automotive leather Eagle Ottawa, LLC is to close its manufacturing facilities in South Africa and Grand Haven, Michigan, USA. The company informed employees at the Grand Haven facility on August 18, having announced the decision to end operations in South Africa several weeks earlier.

The closure of the Grand Haven tannery, which is set to close at the end of October, will affect 80 employees and the company is currently in negotiations with the union that represents the workforce. The cessation of operations at the site had already been anticipated, as it follows a period of gradual downsizing over the past several years.

The closure of the company’s facilities in South Africa will affect approximately 150 employees and operations are set to cease at the end of 2006.

Speaking to World Leather, Eagle Ottawa’s vice president of Human Resources, Jim Wise, said that termination of the company’ operations at both Grand Haven and in South Africa was the result of changing customer demand and production cost considerations. He added that the company has to constantly assess its “global footprint” and must be flexible, adjusting to the current market, thus prompting the decision to focus production in more viable geographical areas such as Mexico, South America, Eastern Europe and China, where the company has recently expanded its facilities. 

Part of the Everett Smith Group, Eagle Ottawa has a workforce of approximately 5,000 world-wide.