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Barnes Group Inc.
, an international industrial and aerospace
manufacturer and service provider, today announced the planned closure of
production operations at its Associated Spring facility located in Saline,
Michigan.
The Saline production operations, which include approximately 50 employees,
primarily manufacture certain automotive engine valve springs, a highly
commoditized product. Based on changing market dynamics and increased customer
demands for commodity pricing, several customers advised the Company of their
intent to transition these specific springs to other suppliers, which led to
the decision to close production operations in Saline. The closure is expected
to be completed mid-year 2014.
The 2014 pretax charges associated with the closure of the production
operations are estimated to be approximately $8 million, with about half of
this amount expected to be recorded in the first quarter. Of this total
amount, approximately $3 million relates to employee termination costs,
primarily severance and pension costs. The balance relates to other costs
associated with the closure of the production operations. Approximately $6
million of the $8 million in pretax charges is expected to result in future
cash expenditures.
These charges are not included in the Company's 2014 full-year outlook
provided on February 21, 2014 which was current only as of the date provided.
The Company plans to update its 2014 full-year outlook during the next
quarterly earnings call, which is anticipated to take place in late April
2014.
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