Myers Industries, Inc. on September 14 announced that it plans to consolidate production facilities in two business segments, Material Handling and Automotive and Custom. This consolidation is related to the company’s previously announced initiatives and assessment of resources to better align capacity and reduce operating costs, which will further strengthen competitiveness.
The consolidation impacts two facilities:
· In the Material Handling Segment, the company will close one facility in Shelbyville, Ky. This injection-molding plant produces plastic reusable containers. The plant employs approximately 88 people.
· In the Automotive and Custom Segment, the company will close one facility in Reidsville, N.C. This blow-molding plant produces custom plastic products for a wide range of markets. The plant employs approximately 70 people.
Both facilities are expected to close by the end of 2009. Production from the facilities will be transferred to other Myers Industries operations in North America. The company will make severance and outplacement support available to affected employees.
President and chief executive officer John C. Orr said, “The decision to close any facility is extremely difficult because of the people and communities it impacts. However, given the changed economic landscape and to better position our business, it is absolutely critical that we further reduce costs, consolidate facilities and fully utilize our high-efficiency molding capacity to enhance productivity.”
Myers Industries expects to incur total one-time, pre-tax expenses of approximately $10.6 million in connection with the consolidation actions, of which approximately $7.4 million is related to the Material Handling Segment and $3.2 million is related to the Automotive and Custom Segment. The company’s cash expenses are estimated to be approximately $1.7 million in each segment.
The Company anticipates an annualized pre-tax savings of approximately $2.5 million related to the Material Handling Segment consolidation. In the Automotive and Custom Segment, the company anticipates annualized pre-tax savings of approximately $2.0 million related to the consolidation. Additional options remain under consideration for certain businesses in the Automotive and Custom Segment, including further restructuring or potential divestitures.
About Myers Industries
Myers Industries Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. The company is also the largest wholesale distributor of tools, equipment and supplies for the tire, wheel and undervehicle service industry in the U.S. The company reported 2008 net sales of $867.8 million.
