Impact Confections to leave city

July 29, 2011 • Local News

Candy company Impact Confections announced Thursday that it is shutting down its Roswell manufacturing facility to consolidate with operations in Wisconsin. About 80 employees will lose their jobs, officials say.

Chief operating officer for Impact Confections Ron Klump says the company, most famous for producing the sour WARHEADS candy and 3-D lollipops, was forced to consolidate due to the economic recession, though he declined to comment on company’s profits, whether the company was in the red, or how much money, if any, the company has lost in recent years.

“Making the decision to close our Roswell facility has [auth] been difficult because we know how much this affects our employees and the community,” Klump said in a statement. “The harsh reality is that all of us are dealing with a tough economy and an increasingly competitive market.”

Klump added that halting operations in Roswell, which has been the site of the main manufacturing facility for about 20 years, was the best option from an “efficiency standpoint.”

“It’s more cost effective,” he said in an interview, though he declined to state how much money the company would save by shutting down the plant.

Roswell plant manager Spencer Nakaguma said employees were given official notice on Thursday, but that it came as no surprise. He says the company has been meeting with employees, some of whom have worked at the plant for 18 years or more, to find them new jobs.

“We have been meeting with our employees over the last several months to let them know what is going on so that there are no surprises and so that they can take steps to provide for their families,” Nakaguma said in a statement. “We are working with local employers and New Mexico agencies to help our employees transition to new jobs.”

Klump noted that it is uncertain if any Roswell employees will transfer to Janesville, Wis., to the Impact Confections Inc.-owned Melster Candies, which produces candies that include Circus Peanuts, Peanut Butter Kisses, salt water taffy, Coconut Toasties, chocolate covered marshmallows, and Crème Drops.

“It could be a few,” he said.

The Roswell facility will begin to close Sept. 30, and is scheduled to be completely closed Nov. 30, Klump said.

Impact Confections Inc. was founded in 1981 and is headquartered in Colorado Springs, Colo.

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