Superior Industries International Inc., Van Nuys, Calif., announced that it is closing its manufacturing facility in Johnson City, Tenn., which will result 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 CEO Steven Borick. He added, “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 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 September 30, 2006, associated with the closing of this facility have yet to be determined. As of August 31, 2006, the book value of the manufacturing assets at the Tennessee location was approximately $18 million.
The closing will be effective January 22, 2007, according to research by Industrial Info Resources, Sugar Land, Texas.
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