The move is a huge economic blow to the small northern Utah town and surrounding area, and an earthquake to families dependent on the facility for wages.

"Everyone's in a panic and wondering what will happen next," said Nikki Anderson, executive director of the Bear River Valley Chamber of Commerce in Tremonton. "We'll just have to see."

La-Z-Boy will cease operations at the Utah facility this summer. It will send 150 of those jobs to a plant in Mexico and shift production from Utah to five other facilities in the United States.

Kathy Liebmann, who handles investor relations for the Monroe, Mich.-based company, said La-Z-Boy decided to consolidate all of its cutting and sewing operations in the Mexican plant as a cost-cutting move. That decision left it with extra capacity at its U.S. facilities and led to the decision to close the plant in Tremonton, with a population of about 6,000.

"Basically the Tremonton plant is not as efficient as our other plants, due to a variety of factors, including a pretty high turnover rate," Liebmann said.

She attributed the turnover to other companies opening facilities in the area and to Utah's robust economy, which is creating competition for jobs.

"Our new Mexican facility will be able to rapidly supply our domestic plants with cut-and-sewn fabrics and leather for custom orders and will complement the existing cut-and-sew program from China," said Kurt L. Darrow, La-Z-Boy's president and CEO, in a written statement.

Kiersten Hunt, who works part time at a pizza restaurant in Tremonton, said Wednesday she learned that her husband would lose his job at the plant after a customer told her about the announcement.

"It's really scary," she said. "There's going to be all these people swarming the job market, looking for work now."

She said her husband, Garren, had worked at the facility for five years.

"I'm hoping he will be able to find something soon."

Hunt, who lives in Brigham City, said there are jobs in the area, but not enough good-paying ones to accommodate all of those who will exit the La-Z-Boy plant.

Chamber director Anderson has two brothers-in-law and a nephew who work at the plant. In some instances, both a husband and wife work there, she said. "This is going to impact a lot of families."

Last year, Procter & Gamble said it would build a $300 million manufacturing facility in the Tremonton area that could employ as many as 1,000 workers within 20 years. Work on the facility in Box Elder County is scheduled for completion in late 2009 or early 2010.

La-Z-Boy has operated a manufacturing plant in Tremonton since 1979.

"La-Z-Boy has been an important part of the economy of northern Utah for a long time," said Jason Perry, executive director of the Governor's Office of Economic Development.

The Tremonton facility accounts for 13 percent of La-Z-Boy upholstery manufacturing and produces recliners, motion furniture and stationary upholstery.

The plant, which covers 675,000 square feet, will be put up for sale after operations cease.

La-Z-Boy will take a pre-tax restructuring charge of $17 million to $20 million, or $0.20 to $0.24 per share, as a result of the restructuring but projects $25 million in annual savings by fiscal 2011.

tharvey@sltrib.com,

lesley@sltrib.com