Insteel Industries Announces Closure of Warren, Ohio Facility
Insteel Industries (NYSE: IIIN) announced the closure of its Warren, Ohio facility, with operations expected to cease by November 2024. The facility, acquired through the purchase of Engineered Wire Products, will have its manufacturing operations consolidated into the company's remaining welded wire reinforcement facilities. The closure will result in up to 35 job eliminations and incur a restructuring charge of $1.9 million. The decision was attributed to low capacity utilization levels and dim prospects for improvement, aimed at reducing operating costs and strengthening competitive position.
Insteel Industries (NYSE: IIIN) ha annunciato la chiusura della sua struttura a Warren, Ohio, con la cessazione delle operazioni prevista entro novembre 2024. La struttura, acquisita tramite l'acquisto di Engineered Wire Products, vedrà le sue operazioni di produzione consolidate nelle rimanenti strutture di rinforzo in filo saldato dell'azienda. La chiusura porterà a un massimo di 35 posti di lavoro eliminati e comporterà un costo di ristrutturazione di 1,9 milioni di dollari. La decisione è stata attribuita a bassi livelli di utilizzo della capacità e prospettive poco incoraggianti per un miglioramento, con l'obiettivo di ridurre i costi operativi e rafforzare la posizione competitiva.
Insteel Industries (NYSE: IIIN) anunció el cierre de su instalación en Warren, Ohio, con operaciones que se espera cesen para noviembre de 2024. La instalación, adquirida a través de la compra de Engineered Wire Products, verá sus operaciones de fabricación consolidadas en las instalaciones restantes de refuerzo de alambre soldado de la empresa. El cierre resultará en hasta 35 eliminaciones de empleo y generará un cargo por reestructuración de 1.9 millones de dólares. La decisión se atribuyó a bajos niveles de utilización de capacidad y perspectivas sombrías de mejora, con el objetivo de reducir costos operativos y fortalecer la posición competitiva.
Insteel Industries (NYSE: IIIN)은 오하이오 주 워렌 시설의 폐쇄를 발표했으며, 운영은 2024년 11월까지 중단될 예정입니다. 이 시설은 Engineered Wire Products의 인수를 통해 획득되었으며, 회사의 나머지 용접 와이어 보강 시설로 제조 운영이 통합될 것입니다. 이 폐쇄로 인해 최대 35개의 일자리가 사라질 것이며, 190만 달러의 구조조정 비용이 발생할 것입니다. 이 결정은 낮은 생산능력 활용률과 개선에 대한 희망이 적은 것에 기인하며, 운영 비용을 줄이고 경쟁력을 강화하는 것을 목표로 하고 있습니다.
Insteel Industries (NYSE: IIIN) a annoncé la fermeture de son site de Warren, Ohio, avec une cessation des opérations prévue d'ici novembre 2024. Le site, acquis par l'achat d'Engineered Wire Products, verra ses opérations de fabrication consolidées dans les installations restantes de renforcement en fils soudés de l'entreprise. Cette fermeture entraînera jusqu'à 35 suppressions de postes et un coût de restructuration de 1,9 million de dollars. La décision a été attribuée à de faibles niveaux d'utilisation de la capacité et à des perspectives peu prometteuses d'amélioration, visant à réduire les coûts d'exploitation et à renforcer la position concurrentielle.
Insteel Industries (NYSE: IIIN) gab die Schließung seiner Anlage in Warren, Ohio bekannt, wobei die Betriebsaufgaben bis November 2024 eingestellt werden sollen. Die Anlage, die durch den Erwerb von Engineered Wire Products erworben wurde, wird ihre Produktionsabläufe in die verbleibenden Schweißdraht-Befestigungsanlagen des Unternehmens konsolidieren. Die Schließung wird bis zu 35 Arbeitsplatzverluste zur Folge haben und mit einem Restrukturierungsaufwand von 1,9 Millionen Dollar verbunden sein. Die Entscheidung wurde mit geringen Auslastungsgraden und trüben Aussicht auf Verbesserungen begründet, um Betriebskosten zu senken und die Wettbewerbsposition zu stärken.
- Consolidation expected to reduce operating costs
- Strategic move to improve competitive position
- Manufacturing operations will be maintained through transfer to existing facilities
- Restructuring charge of $1.9 million
- Elimination of up to 35 jobs
- Low capacity utilization at Warren facility indicates operational inefficiency
Insights
This facility closure represents a strategic cost-reduction initiative amid challenging market conditions. The
The decision to consolidate operations indicates proactive management of capacity utilization and operating costs. While the immediate impact includes restructuring expenses, the long-term benefits should include reduced overhead and improved operational efficiency. The timing of the closure, scheduled for late 2024, allows for a measured transition that should minimize disruption to customer relationships and existing contracts.
The consolidation of the Company’s welded wire manufacturing operations is expected to result in the elimination of up to 35 positions at the
“Given the low capacity utilization levels at our
About Insteel
Insteel is the nation’s largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh, concrete pipe reinforcement and standard welded wire reinforcement. Insteel’s products are sold to manufacturers of concrete products that are used in nonresidential construction. Headquartered in
Forward-Looking Statements and Risk Factors
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not descriptions of historical facts are forward-looking statements that are based on our current expectations and may include commentary on our plans, financial position, liquidity, and other business developments. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described, and we do not undertake and specifically decline any obligation to correct or update any forward-looking statements. For further information regarding risk factors that could affect our operations and future results, refer to our reports filed with the
IIIN - G
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Scot Jafroodi
Vice President,
Chief Financial Officer and Treasurer
Insteel Industries Inc.
(336) 786-2141
Source: Insteel Industries Inc.
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