Swedish company to close Montco facility as part of restructuring, laying off dozens of workers
Dometic says it will close the site by the end of the year.
Dozens of workers are expected to be laid off in Royersford as Dometic, a company headquartered in Sweden, closes a manufacturing facility that has been in the region for decades.
The 89 workers, many of whom work as assemblers at the site, which produces marine mechanical steering and control products, will lose their jobs, according to a notice filed with the state.
“In line with the global restructuring program announced in December 2024, we have decided to close the marine facility,” company spokesperson Minako Nakatsuma Olofzon said via email this week. “This decision is part of our strategy to consolidate the manufacturing footprint.”
Dometic produces products for “mobile living” including gear for RVs and boats. It is the parent company of the Igloo brand, known for its coolers.
The company’s Royersford facility will close by the end of the year, and the work being done there will be transferred to another Dometic site in Sparta, Tenn., going forward.
When the company announced its restructuring plan two years ago, it included closing five distribution sites and two manufacturing locations. At the time, CEO Juan Vargues noted that Dometic was being negatively impacted by high interest rates as well as a decline in customer spending.
The Royersford facility has 75 workers who are represented by United Auto Workers (UAW), Region 9 Local 644, according to the union. Over 100 union workers employed there went on strike in 2023 amid contract negotiations, seeking better pay and lower healthcare costs.
UAW’s Region 9 director, Jim Lakeman, said the facility closure is disappointing and disturbing.
“The members of UAW Local 644 have dedicated their skills and careers to Dometic, while the company has chosen to move its capacity to another state,” Lakeman said in a statement. “This is another example of corporate greed taking precedence over people’s livelihoods and disregarding the company’s impact on the surrounding community.”
