120 jobs lost as Victory Refrigeration leaves Cherry Hill

The parent company of Cherry Hill’s Victory Refrigeration will close its plant in October and move operations to a site in western Pennsylvania.

The shutdown means the loss of about 120 jobs, said Victory President Richard Babboni, who noted 83 of the positions are held by members of the United Industrial Workers union.

Ali Group North America, one of the world’s largest manufacturers of food service equipment, said the change is part of a reorganization of its refrigeration segment in North America. The new division will support the firm’s two commercial refrigeration brands, Victory and Beverage-Air, based in Winston-Salem, N.C.

“Ali has had these two businesses for many years,” noted Babboni. “And they’ve just decided to consolidate the product and back office operations.

“October is the target date (to close), but it might go into November. For now, operations are going full speed.”

Victory has a 250,000-square-foot facility on a 35-acre Woodcrest Road site, but its lease expires at the end of this year, Babboni said. The firm, founded in Philadelphia in 1944, has operated in the township for 25 years.

The Victory Refrigeration site is seen as a potential home for a new Subaru of America headquarters. The car maker, based in an office building on Route 70 in Cherry Hill, wants to expand.

Cherry Hill Council in November approved a resolution directing the planning board and consultant Group Melvin Design to create a redevelopment plan for the site.

A representative of Ali Group North America met with Victory’s workers to announce the move, said a UIW official who requested anonymity.

“I think they handled it professionally, and we’ll be working here as long as possible,” the shop steward added.

“It’s a tough loss jobs-wise, and it’s a tough loss for the community. But it’s a business decision, and we can’t fault the corporation for doing it.”

The change was intended ‘to better serve and support our customers,” said Filippo Berti, CEO of Ali Group North America.

Babboni said all of Victory’s employees have been offered a severance package. The union member also said Ali Group will honor all commitments outlined in the UIW contract. He would not discuss details of the contract.

Babboni said it was possible, but probably unlikely, current employees would relocate to the new site in Brookville, Pa., about 100 miles northeast of Pittsburgh. Workers were given the option.

“It’s more than a five-hour drive,” he noted. “I can’t imagine a lot of employees moving. A lot of people have been here long term.”

Asked what he will do once the plant closes, Babboni said he didn’t know.

“I’m eyeing my options. But right now I’m not sure. Everybody is in the same boat here.

“We knew we had to decide whether we were moving locally or out of state, or even if this consolidation would go through. We were hoping we were just going to move down the road.”

Ali Group North America, which acquired Victory in 2008, is a subsidiary of The Ali Group, an Italian firm based in Milan. The Ali Group employs more than 8,000 people in 26 countries and has 55 manufacturing facilities worldwide.

Source: Courier-Post