Prime Tanning Co. Inc. announced today it would close its Berwick operations and move them to its Hartland plant in Somerset County.

According to an afternoon release, 150 people will lose their jobs in Berwick. However, Prime said, the company's Hartland operations will be hiring to handle the extra work. Prime said it will still use its Berwick offices as temporary headquarters while it works to sell the property there.

"This was a very difficult but necessary decision for Prime as we work to streamline our domestic operations and improve profitability. Like many manufacturing businesses in the U.S., we have been adversely and negatively affected by unprecedented increases in the cost of energy and chemicals and the general economic slowdown," said Prime Chief Executive Officer Robert Moore in the release.

"These unforeseen developments have hastened our need to eliminate excess costs and overhead, and our success as a company depends upon our ability to act decisively to achieve that result. We continue to believe the very best way to serve our loyal customers is as a stable, profitable, and consistent supplier, and this reorganization will ensure that we continue to meet that objective."

Prime Tanning merged with Cudahy Tanning in Milwaukee, Wisc. and Irving Tanning in Hartland in November 2007. The company reorganized its operations, and the Cudahy facility was closed in May. Its work was transferred into Prime's Hartland finishing plant.

On March 31, Prime announced it would merge with Shanghai Richina Leather Co. Ltd. to form Prime Leather International. This transaction is still expected to close in the fourth quarter of this year.

Copyright 2008 Portland Press Herald/Maine Sunday Telegram. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.