December 17, 2009 -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) recently announced a restructuring plan which includes the closure and consolidation of one of its facilities located in Liberec, Czech Republic. The 115 thousand square foot facility was primarily related to the manufacturing and assembly of wiring harness products and will be consolidated into an existing CVG facility located in the Czech Republic.
Reportedly, no employees will be impacted as a result of the move; the company expects the restructuring to be completed by January 2010.
"With the volume decreases we have seen throughout this year, we have been proactive in consolidating our operations. The additional capacity we have within our Czech operations has permitted us to take further actions in minimizing our square footage on a more permanent basis," said Kevin Frailey, EVP and General Manager of the Electrical Systems group of Commercial Vehicle Group. "This consolidation will be beneficial for us as we move forward through the creation of a more optimal use of our overall manufacturing footprint and the elimination of unnecessary fixed costs."
The company expects to record approximately $1.5 million in one-time restructuring costs in December 2009 primarily related to the remaining lease payment obligations through December 2011. The company estimates the restructuring actions will eliminate approximately $1.3 million of facility and operating expenses on an annual basis once the closure is complete.
"Given our fixed overhead costs in the Czech Republic, this decision was necessary to best utilize our facilities and minimize our overall cost basis going forward," said Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group. "This is just one of the many actions we have taken over the past several years to continually align our costs and streamline our operations to ensure we remain a strong global competitor."
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