VAN NUYS, CA (News release) - Superior Industries International, Inc. (NYSE:SUP), the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America, today announced it will close its manufacturing facility in Rogers, Arkansas, as part of an initiative to reduce costs and enhance its global competitive position.
The company said it expects to cease operations at Rogers by the end of this year. The closure will result in scheduled production being shifted to other Superior manufacturing facilities, including those in Fayetteville, Arkansas and Chihuahua, Mexico, and is anticipated to generate a net $15 million labor cost savings year-over-year, resulting from a workforce reduction of approximately 500 employees.
“This action follows a comprehensive review of the company’s cost position in what continues to be an intensely competitive environment,” said Don Stebbins, who joined Superior in May 2014 as its president and chief executive officer and member of the Board of Directors.
“Our board and management team remain focused on building an efficient, operationally stronger organization that can compete effectively with manufacturers around the globe. We appreciate the contributions of our team members at Rogers and will be providing assistance to them during the transition process,” Stebbins added.
As a result of the closure, Superior expects to incur severance costs estimated to be $2.0-2.5 million.
On June 29, 2014, the close of Superior’s second quarter, the net book value of fixed assets and manufacturing equipment at the Rogers location was approximately $22 million. Asset related charges in connection with the closing have yet to be determined, but are expected to be recorded primarily in the third and fourth quarters of 2014. Other costs to be incurred as part of the closure also have not yet been determined.
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