Tupperware Closes Last US Factory, Moves Jobs to Mexico

Tupperware, the brand renowned for its plastic food containers, is closing its last US manufacturing plant in Hemingway, South Carolina. The 78-year-old company plans to relocate production to Lerma, Mexico to capitalize on cheaper labor costs.

The closure, announced last Thursday, will take effect later this year, resulting in the loss of 148 jobs in the small Williamsburg County town. Tupperware called the decision a strategic move designed to optimize manufacturing costs. The company has committed to offering early retirement and severance packages to eligible employees and will host job fairs to help connect displaced workers with other local businesses.

Tupperware follows a trend of companies moving their operations to Mexico. “Establishing logistics operations in Mexico can be advantageous due to its strategic location, extensive trade agreements, growing economy, cost efficiency, and improving infrastructure,” noted one respondent in a recent survey hosted by our sister publication, Logistics Management.

Founded in 1946 by chemist Earl Tupper, the company revolutionized household food storage with its airtight plastic containers. Tupperware quickly became a household name, especially through its innovative sales strategy of home parties, where suburban housewives would gather to buy and sell the products. The Hemingway plant, opened in April 1976, has produced billions of Tupperware products over its 48-year history.

This development follows a challenging period for Tupperware, headquartered in Orlando, Florida. In April, the company warned that it had “substantial doubt” about its ability to continue operating due to declining demand for its products and increasing debt. This financial instability led to a significant drop in its stock price, which was trading at $1.50, down from nearly $100 in 2013. Additionally, the New York Stock Exchange threatened to delist Tupperware for failing to file mandatory annual reports on time.

“It’s important to note this decision is not a reflection of the performance of the Hemingway tea,” Tupperware said.” “We appreciate each of our valued team members and the many years of service they have dedicated to our salesforce and to the Company.”

The company had previously sold the Hemingway plant to a real estate investment company for $15 million and leased it back before deciding on the closure.

Tupperware's move is expected to consolidate its manufacturing operations, as the Lerma facility already produces items for the US and Canadian markets.