Franklin Electric Reduces Workforce of Submersible Turbine Pump Operations

20.01.2004

Franklin Electric announced its plans to consolidate the submersible turbine pump operations of FE Petro, Inc. currently located in the Madison, Wisconsin area, ...

and the service station hardware and flexible piping operations of EBW, Inc. and Advanced Polymer Technology, Inc. currently located in Muskegon, Michigan into a new leased facility in Madison, Wisconsin.

94 employees at the Muskegon facilities will be affected by the consolidation. Workforce reductions are anticipated to begin in May with the consolidation completed by July, 2004.

The cost of the consolidation is included in the previously disclosed cost estimate for the multi-year global manufacturing re-alignment of the Company totaling approximately $10 million pre-tax. Based on current plans, more than half of these incremental costs will be recognized, as incurred, in the last three quarters of 2004 with the balance expected to be recognized, as incurred, in the first three quarters of 2005.

Scott Trumbull, Chairman and CEO of Franklin Electric said "With the strengthening sales, substantial improvement in margins and integration of INCON completed, we believe that the move into this new facility is appropriate. In addition to the advantages of improving customer service levels, increasing efficiencies, enhancing product development effectiveness and reducing overhead costs; the new fueling systems facility will provide a unique opportunity for end users, distributors and contractors to receive state-of-the-art training and technical assistance for the petroleum industry's broadest range of underground fueling systems products."

Franklin Electric Co., Inc. (Nasdaq: FELE - News), a technical leader in electric motors, drives and controls, is the world's largest manufacturer of submersible water and fueling systems motors, a manufacturer of underground fueling systems hardware and flexible piping systems and a leader in engineered industrial motor products.

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