Release time : 2015-06-15 07:07:58
NN, Inc. (Nasdaq: NNBR) today announced it will close its manufacturing facility located in Tempe, Arizona. The Tempe facility which was acquired in the 2006 acquisition of Whirlaway Corporation had sales of approximately $12.0 million for calendar year 2009. Whirlaway produces a variety of high-precision metal components including fluid control components and assemblies, shafts and other precision metal parts. The closing will impact approximately 130 employees.
Roderick R. Baty, Chairman and Chief Executive Officer of NN, commented,We are saddened to make this very difficult decision. However, current economic conditions coupled with the long-term manufacturing strategy for our Whirlaway business necessitate a consolidation of our manufacturing resources in Ohio. We anticipate a portion of the current production and products will be consolidated into our remaining two facilities in Wellington, Ohio. During this transition, we will work closely with our customers to ensure continuity in the supply of their products. We expect to incur cash charges of approximately $2.5 million in severance, equipment relocation and other closing costs during the first three quarters of 2010.
Thomas G. Zupan, President of Whirlaway, said, We deeply regret having to make this decision and acknowledge the impact this has on our outstanding employees in Tempe. For a limited period, we will provide ongoing support in the form of severance payments, continuation of benefits and assistance in outplacement efforts. I would like to thank these employees for their commitment and service to Whirlaway and NN and greatly appreciate their ongoing support during this time of transition.
NN, Inc. manufacturers and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 12 manufacturing plants in the United States, Western Europe, Eastern Europe and China. NN, Inc. had sales of US $425 million in 2008.