Madem Reels is closing its Chattanooga plant after about two years of making drums and reels to hold cable used in the electrical and steel industries.
The company said in a letter to city and Hamilton County officials that it has employed about 80 people over the two years of operating its East 42nd Street facility.
Mark Kleiner, the company’s operations manager, said in the letter that the company experienced the effects of the economic downturn that started shortly after it began operations.
“These events have made it impossible for our Chattanooga operations to achieve sufficient profitability,” he said.
The company terminated its agreement with the city’s Industrial Development Board and is paying $159,000 to fulfill its obligations related to property tax incentives is has received.