AKRON, Ohio ---Myers Industries, Inc. (NYSE: MYE) plans to consolidate production facilities in two business segments, Material Handling and Automotive and Custom. This consolidation is related to the Company's previously announced initiatives and assessment of resources to better align capacity and reduce operating costs, which will further strengthen competitiveness.
The consolidation impacts two facilities:
* In the Material Handling Segment, the Company will close one facility in Shelbyville, Kentucky. This injection-molding plant produces plastic reusable containers. The plant employs approximately 88 people.
* In the Automotive and Custom Sgment, the Company will close one facility in Reidsville, North Carolina. This blow-molding plant produces custom plastic products for a wide range of markets. The plant employs approximately 70 people.
Both facilities are expected to close by the end of 2009. Production from the facilities will be transferred to other Myers Industries operations in North America. The Company will make severance and outplacement support available to affected employees.
President and Chief Executive Officer John C. Orr said, "The decision to close any facility is extremely difficult because of the people and communities it impacts. However, given the changed economic landscape and to better position our business, it is absolutely critical that we further reduce costs, consolidate facilities and fully utilize our high-efficiency molding capacity to enhance productivity.'
Myers Industries expects to incur total one-time, pre-tax expenses of approximately $10.6 million in connection with the consolidation actions, of which approximately $7.4 million is related to the Material Handling Segment and $3.2 million is related to the Automotive and Custom Segment. The Company's cash expenses are estimated to be approximately $1.7 million in each segment.
The Company anticipates an annualized pre-tax savings of approximately $2.5 million related to the Material Handling Segment consolidation. In the Automotive and Custom Segment, the Company anticipates annualized pre-tax savings of approximately $2.0 million related to the consolidation. Additional options remain under consideration for certain businesses in the Automotive and Custom Segment, including further restructuring or potential divestitures.
Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive and commercial and consumer markets. The Company is also a distributor of tools, equipment and supplies for the tire, wheel and under vehicle service industry in the U.S. Myers Industries reported 2008 net sales of $867.8 million.
Visit www.myersind.com to learn more.
For a complete version of the BUSINESS WIRE press release: http://www.businesswire.com/news/home/20090914005431/en
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