HNI plans to close U.S. furniture manufacturing facility
American professional furniture maker, HNI disclosed in a regulatory filing that it has approved the closure of its Florence, Alabama, USA office furniture manufacturing facility as part of its plan to reduce structural costs.
The company expects to consolidate the Florence production into existing office furniture manufacturing facilities and expects the closure and consolidation to be substantially completed by the first quarter of 2015.
HNI estimates the realignment to save USD 5.8 million annually beginning in 2015 and anticipates charges related to the closure and consolidation to impact pre-tax earnings an estimated USD 11.2 million.
HNI estimates cash restructuring and other costs associated with these actions to be USD 6.8 million, with USD 1.7 million related to workforce reductions and USD 5.1 million related to costs association with manufacturing consolidation and production moves.