Kodiak Group Holdings announced Tuesday it will cease production this fall at a boot manufacturing facility in eastern Newfoundland, and move production to a plant in Ontario.
The Kodiak-owned plant in Harbour Grace employs about 80 people. (CBC)
Production will halt at Terra Nova Shoes in Harbour Grace by the end of November, the company said in a release.
The 80 people working at the plant will be given severance packages and bonuses to stay on through the fall, but will need to apply for the jobs at a new plant in Cambridge, Ont.
"Successful candidates will receive relocation assistance to move," the company said.
Terra Nova Shoes received an $8-million interest-free loan from the Newfoundland and Labrador government in 2008.
In 2010, however, the company cut 59 jobs at the Conception Bay plant.
Kodiak, which bought Terra Nova Shoes in 2005, said Tuesday it is "honouring all monies it received" via the interest-free loan.
The company said it has become too expensive to manufacture the shoes in Newfoundland and then ship them for distribution to Ontario. The plant in Harbour Grace was built in 1971.
"The reality is the high costs to continue operating the Harbour Grace plant have become unsustainable over the past several years," Kodiak president Kevin Huckle said in a statement.
"We care deeply about everyone who has worked hard in Harbour Grace to make Terra a world-class brand, which is why we are encouraging our employees to apply for opportunities at the new facility in Cambridge," he said.
"We've made sure their severance packages go beyond what is required and we are offering bonuses for workers to stay until the plant ceases operations."
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