Littelfuse Inc. on May 19 announced restructuring plans which include the following:
· The intent to negotiate with the workers’ council to transfer manufacturing from the company’s Duensen, Germany, site to Mexico. Research and development, sales and other functions will remain in Germany.
· The intent to negotiate closure of a company-owned distribution center in the Netherlands and distribute products in Europe through a third-party logistics provider.
· Plans to consolidate the company’s Taiwan wafer fabrication facility (acquired as part of the Concord Semiconductor acquisition in 2006) into Wuxi, China.
· Consolidation of certain support activities into the company’s existing low-cost sites.
· Other workforce reductions due to functional realignment and job elimination.
The company expects to book restructuring charges of approximately $5 million to $8 million pre-tax over the next several quarters related to these announcements. These restructuring activities are expected to begin in the third quarter of 2009 and be fully complete by the end of 2010. The annual savings from these activities are expected to be approximately $7 million.
“These latest restructuring plans are consistent with our overall themes of reducing sites, moving activities to low-cost locations and moving to a leaner and flatter organizational structure,” said Gordon Hunter, chief executive officer. “These were difficult decisions that affect many Littelfuse associates who have contributed to our success. However, we believe that these moves are in the best interest of our company, our customers and our shareholders over the long term.”
About Littelfuse
As the worldwide leader in circuit protection products and solutions with annual sales of $530.9 million in 2008, the Littelfuse portfolio is backed by industry-leading technical support, design and manufacturing expertise. Littelfuse products are vital components in virtually every product that uses electrical energy, including automobiles, computers, consumer electronics, handheld devices, industrial equipment and telecom/datacom circuits. Littelfuse offers Teccor, Wickmann and Pudenz brand circuit protection products. In addition to its Chicago world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, Canada, China, England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.
