Colfax to close Maine valve products plant
Colfax Corp., a global leader in fluid-handling solutions for process applications, announced Tuesday that it will close its valve products plant in Portland, Maine.
Production for its Portland Valve products will move to the company's facilities in Warren, Mass., the company said.
The consolidation is expected to reduce the company's cost structure by approximately $1.0 million/year ($700,000 after taxes or 2 cents/share). The Portland plant, which employs 40 people, is scheduled to close by the end of the year.
"Although we regret the impact that the plant closing will have on our associates in Portland, this move supports our continued efforts to improve productivity and reduce structural costs by rationalizing and leveraging our existing assets and back office functions,” said Clay Kiefaber, CEO of Colfax.
Colfax said it expects to recognize cash expenses related to the closure of approximately $1.5 million during the remainder of 2011 ($1.0 million after taxes or 2 cents/ share), including approximately $800,000 in severance and other termination-related costs and associate and equipment relocation costs of approximately $700,000.
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