Consolidating manufacturing plants
The Company estimates that it will incur pre-tax exit and restructuring costs of approximately $12 million, substantially all of which will be cash charges, including approximately $2 million for one-time termination benefits and other personnel-related costs, approximately $1 million for excess facilities and related costs, and approximately $9 million in other exit costs primarily in connection with production realignment.
In addition, the Company expects to make an investment in capital expenditures of approximately $11 million in order to effectuate the restructuring plan.
The costs and expenditures will be recognized as incurred over the approximately two years that it estimates the consolidation will take.
“These actions will enable us to centralize production at our most technologically advanced facility so that Clopay can improve its manufacturing efficiency while improving our ability to serve the needs of our customers,” stated Steve Lynch, President of Clopay Building Products Company.
This year, Clopay is following up with the launch of several new eco-friendly garage door designs and materials that are unique in the marketplace.