Insteel Industries Announces Consolidation of PC Strand Facilities
03/02/2015 - Insteel Industries Inc. will be closing its prestressed concrete strand (PC strand) facility in Newnan, Ga., and moving the manufacturing to its other three PC strand production facilities located in Gallatin, Tenn.; Houston, Texas; and Sanderson, Fla. The Newnan facility was acquired from American Spring Wire Corporation in August 2014.
The consolidation of the plants is expected to result in the elimination of 20 positions at the Newnan facility. Employees of the Newnan facility will be offered employment at Insteel's other facilities together with relocation and transition assistance. It is anticipated that operations at the Newnan facility will cease by the end of March 2015 and the PC strand-related equipment will be relocated to Insteel's other facilities.
Insteel expects to incur total costs of approximately US$0.8 million in connection with the closure of the Newnan facility, which includes US$0.4 million for equipment relocation costs, US$0.3 million for asset impairment charges and US$0.1 million for employee separation costs. The future cash expenditures associated with the closure of the Newnan facility are expected to represent approximately US$0.5 million of the US$0.8 million of total costs. The annualized cost savings from the consolidation of the plants is expected to be approximately US$3.0 million.
"The actions we are taking to consolidate our PC strand facilities will strengthen our market leadership position by aligning our manufacturing capacities with the requirements of our markets and reducing our operating costs," said H.O. Woltz III, Insteel's president and chief executive officer. "Our decision to close the Newnan facility was made only after thoroughly evaluating other alternatives and we are committed to making the transition as smooth as possible for the employees who are impacted."
Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh (ESM), concrete pipe reinforcement and standard welded wire reinforcement. Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, N.C., Insteel operates eleven manufacturing facilities located in the United States.
Insteel expects to incur total costs of approximately US$0.8 million in connection with the closure of the Newnan facility, which includes US$0.4 million for equipment relocation costs, US$0.3 million for asset impairment charges and US$0.1 million for employee separation costs. The future cash expenditures associated with the closure of the Newnan facility are expected to represent approximately US$0.5 million of the US$0.8 million of total costs. The annualized cost savings from the consolidation of the plants is expected to be approximately US$3.0 million.
"The actions we are taking to consolidate our PC strand facilities will strengthen our market leadership position by aligning our manufacturing capacities with the requirements of our markets and reducing our operating costs," said H.O. Woltz III, Insteel's president and chief executive officer. "Our decision to close the Newnan facility was made only after thoroughly evaluating other alternatives and we are committed to making the transition as smooth as possible for the employees who are impacted."
Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh (ESM), concrete pipe reinforcement and standard welded wire reinforcement. Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, N.C., Insteel operates eleven manufacturing facilities located in the United States.
