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Nichiha USA is shutting down one of its Macon plants, downsizing a complex that had expanded to the tune of $150 million as recently as 2022.
The Japanese company said the move came as a result of a dimmer forecast for the residential products made in its so-called Plant 1, which focuses on architectural wall panels.
That plant will be shuttered, and 171 jobs cut, with some functions being moved to Nichiha’s Plant 2, opened more recently to focus on fiber-cement wall cladding for commercial applications like hotels, hospitals and office buildings.
President and CEO Takayuki Okada called “extremely difficult” but “ necessary to build a stronger foundation for long-term success.”
Nichiha USA said it will support affected employees after the plant officially closes Dec. 5. A required layoff notice to the Technical College System of Georgia noted that insurance premiums for affected employees will be paid through the end of 2025. Negotiations with employees on severance and benefits are ongoing, including the union representing 148 of them.
“Macon has been more than just a place of business. It has been a true home for the company, our employees, and their families. While this decision was extremely difficult, it is necessary to build a stronger foundation for long-term success,” Mr. Okada said in a statement. “Nichiha USA remains committed to being a responsible corporate citizen in Macon-Bibb County for many years to come.”
Spokeswoman Maria Fernandez said the decision was not tied to any concern over tariffs and was instead about optimally aligning capacity to demand by phasing out some legacy products and moving residential products to Plant 2.
“The decision to close Plant 1 affects the legacy production line that supported certain residential products, but it does not change Nichiha’s continued investment in products to serve the residential market,” Ms. Fernandez said. “Our second Macon facility (Plant 2) has expanded capabilities to support production of our Architectural Wall Panel solutions, allowing us to streamline operations while continuing to meet demand and service residential and commercial customers without interruption.”
Nichiha is a longtime corporate citizen of Georgia. After setting up a headquarters in Johns Creek, which is unaffected by the cuts, the Japanese company announced in 2006 that it would set up shop in Macon, later expanding twice with announced investment totaling $370 million.
However, not all of Nichiha’s history here is rosy — two workers have died at the plant, which had been cited for some 60 Occupational Safety and Health Administration violations by 2019, at which point the company had paid more than $200,000 in fines.