CD/DVD manufacturer Entertainment Distribution Company is closing its plant in Blackburn, Lancashire, with the loss of 260 jobs, moving production to its other plant in Hannover, Germany. EDC produces CDs, DVDs and covers for the music industry and has been operating in Blackburn for 27 years under a number of different owners.

The American-owned firm blamed increased internet music downloads and the recession for hitting sales. But the firm had been facing recent problems, including contracts lost when high-street retailer Woolworths went out of business and increased competition from similar factories in Eastern Europe.

In a statement issued today, the company says that “based on an extensive feasibility analysis, EDC has determined to effect the closure of EDC's Blackburn optical disc facility. The closure is expected to take effect on December 31, 2009, chosen to respect the notice periods of EDC Blackburn Ltd's employees and to allow for an orderly wind down of the EDC's Blackburn facility.”

Headquartered in New York City, EDC employs approximately 1200 people. In Europe, EDC provides supply chain services to music, video and interactive media customers across the continent from a dedicated 792,000 square foot center in Hannover, Germany. The UK market is served by a 149,000 square foot CD manufacturing facility in Blackburn.

“EDC shall be strengthened materially, both operationally and financially, by the synergies that result from layering 40-50 million of incremental disc manufacturing volume onto EDC GmbH (Hannover)'s existing, substantially profitable facility," said Robert L. Chapman, Jr., EDC CEO.

In May 2007, the company changed its name to Entertainment Distribution Company, Inc. from Glenayre Technologies, Inc.

Story filed 31.03.09