Commercial Vehicle Group has announced that it will be shutting down its Vancouver facility and will in turn distribute the work towards other nearby North America CVG plants. CVG’s Vancouver operation produces interior soft trim and molded dash assemblies for the heavy truck industry as well as molded products for the gaming and material handling industries.
The facility is approximately 62,000 square feet of leased space and currently employees approximately 60 hourly and 11 salary employees who will be impacted by this action. At its peak, the facility employed over 200 associates.
The costs associated with the restructuring plan include severance, facility shutdown costs, contractual costs and move costs to relocate certain equipment and assets. The Company estimates the closure to be substantially complete by the end of July 2009 and estimates that the total restructuring cost to be incurred related to this plan will be approximately $0.8 million. The Company anticipates a net pre-tax expense of approximately $0.4 million during 2009 and $0.7 million in annual cost savings thereafter.
(Source) Press
Tags: assets, Closure, cvg, heavy truck, material handling, molded products, move costs, north america, salary employees, tax expense, vehicle group