The Nicholson File plant in Cullman will close next year, after more than 35 years in operation.

Approximately 60 employees remain at the company — which had employed several hundred people in previous years, before a long-term series of cuts reduced those numbers. The remaining staff will be laid off in March, 2011 on a staggered schedule, depending on department.

The tool manufacturing company has changed hands twice in recent years, and is currently owned by Apex Tool Group; after former owner Cooper Tools merged with the Danaher Tool Group earlier this year.

The Cullman facility is being shut down as part of a long-term strategic plan to keep Apex Tool Group profitable going forward, according to an internal memo obtained by The Times. A representative from the Apex corporate office did not return a request for comment by deadline of this article.

“You probably know that we have been analyzing many different ways to strengthen our new company so that we can achieve sustainable, profitable growth for the long-term,” Apex President and CEO Steve Breitzka wrote to employees. “In our first few months, we have had to face some challenging organization issues and have stuck to our core values to make key decisions. Unfortunately, not all of our decisions are good news, but it is important to communicate those decisions nonetheless.”

Operations from the Cullman facility will be consolidated into factories in Cali, Colombia; Tlalnepantla, Mexico; and Sorocaba, Brazil. The move is expected to be completed in April 2011, according to the memo.

In addition to the Cullman plant, locations in Monroe, North Carolina and Hicksville, Ohio are also being shuttered as part of the restructuring.

“This consolidation plan follows extensive and thoughtful analysis of our work processes, operating costs, technological capabilities, and resource capacity and we are confident these changes will simplify operations and enable better service to our customers,” Breitzka wrote. “Organization changes of this magnitude are never easy and they require a high degree of discretion and care as alternatives are examined. We greatly appreciate the dedication of our employees in these sites who have committed years of outstanding service to our customers. We will ensure that we treat our employees with dignity and respect as we manage these site closures.”

Cullman Economic Development Agency Assistant Director Dale Greer said Nicholson File employees have been deeply-rooted in Cullman for decades, and the closure represents a major loss.

“As long as I’ve been here, three or four of those plant managers have been very close friends, and it’s just a sad day for us,” he said. “They’ve been a part of this community for well over 30 years, and provided great opportunities for their workers and families.”

Raymond Williams, with the Cullman County Industrial Development Authority, said he was disappointed to learn the company would be shutting down.

“I hate to see us lose jobs, and that’s never a good thing,” he said. ‘They’ve been a good partner to the community for several years.”

Peggy Smith, director of the Cullman Economic Development Agency, echoed those sentiments.

“It’s hard to imagine Cullman without Nicholson File,” she said. “Over the years, they’ve exemplified the type of  involvement you want from a company in the community. They’ve always been particularly supportive in our industrial recruitment efforts, and at upholding the quality of our workforce.”

‰ Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 220.