Steelcase will close manufacturing facility in France
Together with the publication of its Q1 2014 results, American professional furniture producer, Steelcase, announced that it has initiated procedures with the applicable works councils regarding a project to exit a manufacturing facility just outside Strasbourg, France and transfer its activities to other existing facilities in the EMEA region to safeguard the company’s global competitiveness.
The plant currently provides employment to 200-250 people. They were informed last week.
Steelcase said that ‘this project may involve the transfer of the operations of the facility to a third party or result in a closure, and the total costs of the project are currently estimated at USD 30 to USD 50 million, with anticipated annual savings of approximately USD 10 million when fully implemented.’
“The action announced today represents another step of our multi-year strategy to restore profitability in this region and safeguard our global competitiveness,” said Dave Sylvester, senior vice president and CFO.
“Together with our plan to exit a manufacturing facility in Germany (announced in the third quarter of fiscal 2014), these actions are expected to reduce our adjusted operating losses by approximately USD 20 million on an annualized basis when fully implemented.”