VAN NUYS, CA — Superior Industries International has announced plans for the restructuring of its manufacturing facility in Van Nuys, CA. Approximately 375 of the company’s 635 manufacturing employees will be laid off as a result. No corporate staff will be affected by the layoffs.
Superior President and CEO Steven Borick said going forward the facility will concentrate on specialty operations.
“By focusing on our strengths, we believe this facility will be profitable at lower volumes,” said Borick. “This is the latest step in our program to rationalize our production capacity to more effectively balance plant utilization and location against our customers’ changing requirements for pricing, wheel size, design, delivery, scheduling and volume.”
The company expects to incur severance and other costs related to the layoffs of approximately $1.5 million in 2006. Impairment charges, if any, which are required to be recorded as of December 31, 2005, associated with the downsizing of the Van Nuys facility have yet to be determined. At December 31, 2005, the book value of the manufacturing assets at the Van Nuys location was approximately $35 million.
Superior supplies aluminum wheels and other aluminum automotive components to Ford, General Motors, DaimlerChrysler, Audi, BMW, Isuzu, Jaguar, Land Rover, Mazda, MG Rover, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen.
For additional information about the company, visit: www.supind.com .
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