Due to the high volume of mass layoff notices this week, it will be another four post day here at TDS as I try to clear out the backlog. This latest story is from Enhanced Online News:
Tredegar Corporation announced that its Bonnell Aluminum subsidiary will close its plant in Kentland, Indiana. The plant, which employs 146 people, is scheduled to close by September 30, 2012.Pretty run of the mill stuff, so to speak. Except, check out the telling quote from the company president:
Tredegar estimates that it will recognize charges related to the shutdown of approximately $8 million, including accelerated depreciation on fixed assets of approximately $4 million, severance-related charges of approximately $1 million and other shutdown-related charges of approximately $3 million. Other shutdown-related charges are primarily comprised of equipment transfers and plant shutdown charges. It is anticipated that most of these charges will be recognized over the next 18 months.
The Kentland facility had sales of approximately $38 million in 2010 and has been operating at a loss for the past several years.
Duncan Crowdis, president of Bonnell Aluminum, said: “This was a difficult decision to make, and we regret the impact this decision will have on our employees in Kentland. While the employees have made an exceptional effort to help weather the current construction recession, prospects for a significant recovery in Kentland’s core market, residential building and construction, now appear to be well into the future.Holy crap! The truth! In the media! Too bad you have to dig all the way down into the details of a local layoff story to find it.
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