VAN NUYS, CA — Superior Industries International announced it will close its manufacturing facility in Johnson City , TN , resulting in a layoff of approximately 500 employees.
"This is the latest step in our program to rationalize our production capacity to more effectively balance plant utilization and costs against our customers’ changing requirements for pricing, wheel size, design, scheduling and volume," said President and Chief Executive Officer Steven Borick. "All existing customer programs will be transferred to Superior ‘s other manufacturing plants. However, recent Big 3 Automakers’ announcements of sweeping production cuts, particularly in Superior ‘s important light trucks and SUV platforms, have reduced Superior ‘s requirements for the near future. Employee notices were distributed today so that programs can be developed jointly with the State of Tennessee to assist our workers in their future employment needs."
The company expects to incur severance and other costs related to the layoffs of approximately $1 million over the next six months. Impairment charges related to the assets, if any, which are required to be recorded as of Sept. 30, associated with the closing of this facility have yet to be determined. At Aug. 31, the book value of the manufacturing assets at the Tennessee location was approximately $18 million.
For additional information about Superior , visit: http://www.supind.com.
