Gun maker Beretta U.S.A. will move all of its manufacturing out of Maryland to a new factory in Tennessee, the company announced Monday, after protesting Maryland's strict gun law passed last year.
The company met with employees Tuesday to tell them that 160 manufacturing and related jobs would move. Beretta's headquarters, including about 95 administrative and executive jobs, will stay in Accokeek, Maryland.
Previously, the company had said it would use the new Tennessee plant only for making new products. That plant will be an expansion for the company and may eventually employ 300 people, said Jeff Reh, Beretta's general counsel.
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"We are fairly upset about even having to consider a move," Reh said. "Our preference would have been to stay and grow in Maryland for decades to come.
"But we have to be prudent about our future, and we have more chance to expand and grow in a state that is more positive to the second amendment," Reh said.
Beretta was active in lobbying against Maryland's Firearm Safety Act of 2013, considered one of the nation's most restrictive gun laws. It bans 45 types of assault weapons and prohibits buying ammunition magazines with more than 10 rounds. Gun buyers must be fingerprinted and licensed before buying a handgun.
Gun buyers and gun shops sued to stop the law from taking effect, but a federal court refused to block the law, and it went into effect in October.
Gun-control groups have said the law is partly responsible for statistics showing gun deaths in Maryland fell 24 percent in the first five months of 2014 compared with the same period in 2013.
Beretta said the legislative battle over the bill was a wake-up call for the company. One version of the law would have outlawed gun manufacturing in Beretta's home state; that version passed the state Senate and was supported by the governor, and was stopped in the state House, after Beretta lobbied hard against it.
"The obvious conclusion is that political developments can have an economic effect," Reh said. "It's really not fair for a legislature to just blithely pass restrictions without expecting some kind of reaction."
Jeff Cooper, the company's general manager, said in a statement: "The possibility that such restrictions might be reinstated in the future leaves us very worried about the wisdom of maintaining a firearm manufacturing factory in the state."
Maryland Governor Martin O'Malley issued a statement, saying his administration was "disappointed with this decision" and pointing out other job growth in the state -- the administration says Maryland has created more than 24,100 total jobs since last June.
Prince George's County spokeman Scott Peterson echoed that disappointment, adding, "if there were any issues that the county could have addressed to keep Beretta here, you can be sure that we would have addressed them immediately."