Nemschoff To Close Sioux Center Factory

The Nemschoff factory in Sioux Center will close its doors forever this September, a move that'll leave nearly 100 people out of a job.

Nemschoff's Sioux Center factory will close September 15th, and according to a spokesman from Nemschoff's parent company both a slow economy and new regulations in President Obama's health care reform plan are to blame.

After 15 years in Sioux Center, the factory will close in phases.

About 90 people work there right now, 30 of them will be laid off by the end of July, 50 more will be let go by the end of August and the rest by September 15th.

Nemschoff makes healthcare furniture, all of its production will be moved to factories in Sheboygan, Wisconsin.

"These are good people," said Mark Schurman, Director of Corporate Communications at Herman Miller, Inc., Nemschoff's Parent Company. "The decision is in no way a reflection on the quality of that team or their work, they are highly productive, they make great products, and any area employer would be well served to hire them."

Nemschoff says the Sioux Center employees won't be offered a chance to transfer to Sheboygan, but they will be offered severance pay and benefits, along with career services programs to help them find jobs.