Xerium Offers Further Details of Restructuring Process, Closing Two Added Plants, Cutting Jobs in Europe
Xerium Technologies, Inc. (NYSE: XRM), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, is announcing today the closing of 2 more of its manufacturing plants, the further reduction of headcount in Europe and the movement of polyurethane roll casting equipment to China. Within the last year, the company has initiated the closing of 4 manufacturing operations, installed new machines in low cost countries, and lowered its SG&A costs. The company is in the beginning stages of a multi-year repositioning of its cost structure and asset base to better mirror its served markets.
Xerium has commenced negotiations to close its paper machine clothing facility in Zizurkil, Spain with its employees' representatives and is closing its spreader roll facility in Charlotte, North Carolina. The company expects permanent annualized cost savings of $3.2 million from these actions.
The measures announced today are additive to previously announced cost restructuring actions. Those previously announced actions are expected to result in annual savings of $13.8 million, bringing the cost-takeout total to $17.0 million. These cumulative actions include:
* Reduction of selling costs in Europe via termination of sales agency agreements * Closure of clothing production operation in Argentina * Closure of roll covering plant in France * Reduction of base costs in Europe via headcount reduction * Closure of clothing plant in Spain * Closure of roll covering plant in North Carolina * Redeployment and expansion of capabilities and capacity in China and Mexico
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