The Philips plant in Sparta, TN, the area's largest employer, announced today that it will be closing its doors in early 2012. 

The banner on the outside walls of the plant reads “2010 Top 10 America’s Best Plant.”  The sign on the Philips plant in Sparta, TN references the Industry Week honor that the fluorescent lighting facility celebrated just months ago.  As Industry Week writer Peter Alpern wrote:

“It doesn't take more than a few minutes inside Philips Professional Luminaires' plant in Sparta, Tenn., before the deep, distant rumble of its massive stamping presses resonate in one's ears and bones. As Dave Uhrik, Philips Sparta's plant manager, jokes, that rumbling is the sweet sound of money being printed.” 

But today, at 2 p.m., the rumbling stopped, while 271 employees gathered to hear what seemed to be a shocking message for the much-decorated plant:  the Philips Sparta manufacturing operation will be closing. 

According to employees who heard the message this afternoon, the plant will not be closing immediately, but within the next 17 months.  

The timing may give people like single mother Nichole Dixon some time to figure out next steps.  Said Nichole on Facebook “I’ve got no clue what I'll do.”    

The plant has been manufacturing lights since coming to Sparta in 1963 and has withstood the challenge of foreign competition, becoming noted for its ability to re-invent itself.    

The plant lobby gives testimony to the changes:   Just last year, the plant received the Jim Alford Award for their effective use of state training funds, as well as the Industry Week Top 10 award.    The plant was also named “Philips Best Plant” and “Most Improved Safety Plant” for 2009.   In September, the plant was selected as the “Best Lean Manufacturing” plant through a Philips competition among North American factories.  In that same competition, the plant garnered “Best Culture” and “People’s Choice” awards as well. 

According to county compensation survey data and information, the plant is responsible for millions in payroll that funnels into White and surrounding counties.  Add to that number the affected supply base, and this closure is likely to have a significant impact on the local economy.    

Sparta Mayor Jeff Young says that the factory has been a vital part of the community and says "I hope that this is not a final decision.  My mother worked there for over 46 years.   We've got to see if there's any way to change this decision." 

Silvie Casanova, spokesperson for Philips Lighting, says that it was a business decision that has “no reflection on performance at the plant.”    Citing a move to “new technologies,” Casanova said that a slump in the construction market and “a multitude of factors” played a role in the decision.

The product is slated to move to “several different facilities in North America” according to Casanova, who acknowledged that Mexico could be an option, though she was unable to confirm that.  

Philips will be working with state and local officials for job placement and training, according to Casanova.  

Philips' brand promise is "Sense and Simplicity."  But to the employees in Sparta tonight, this move simply makes no sense.