NEW ALBANY, Ohio — Commercial Vehicle Group (CVG) has announced plans to close its Vancouver, Wash., manufacturing facility. The work currently performed at the Vancouver facility will be distributed to other CVG plants in North America.
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 employs approximately 60 hourly and 11 salary employees who will be impacted by this action. At its peak, the facility employed more than 200 associates.
"This was a regrettable, but necessary step in response to current market conditions. This extended downturn in the national and global economies has impacted our industry and end users particularly hard, which has forced us to examine our entire manufacturing footprint and consolidate operations to further reduce costs and create operational efficiencies in line with current market realities," said Jerry Armstrong, president of Cab Systems. "We regret the impact this action will have on our Vancouver employees and their families, and we will assist them during this difficult time to help transition their lives," added Armstrong.
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 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.
