Franklin Electric Announces New Plans for Manufacturing Optimization
Franklin Electric Co., Inc. has approved a plan to close its Wittlich, Germany manufacturing facility. As part of this action, the Company will transfer the existing Wittlich manufacturing activity to its Brno, Czech Republic facility. The transfer should be completed by the middle of 2016.
The Company will maintain its European Water Systems Headquarters and distribution center in Wittlich and this announcement pertains only to the manufacturing operations located there.
Further, the Company will also complete other asset write-offs, miscellaneous realignments and fixed costs reductions in other European based business units and facilities.
The Company has estimated the pretax charge for these actions to be between $13.2 million and $14.0 million. The charges will begin in the third quarter of 2014 and are estimated to conclude by the end of 2016 and include severance expenses, professional service fees, asset write-offs, and temporarily leased facilities costs. Approximately ten percent of these charges will be non-cash.
Source: Franklin Electric Co., Inc.
