5N Plus Inc. Announces Footprint Optimization Initiatives

About this update from 5n Plus Inc.

[{"type":"text","content":"\n\n\n\n5N Plus Inc. Announces Footprint Optimization Initiatives\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n5N Plus Inc. Announces Footprint Optimization Initiatives\nCanada NewsWire\nMONTREAL, Sept. 29, 2016\n\n\n\nMONTREAL, Sept. 29, 2016 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) (the \"Company\" or the \"Group\"), the leading producer of specialty metal and chemical products, announced today its intention to consolidate the Company's operations at Wellingborough, U.K. with other sites within the Group. In addition, the Company will consolidate the operations of DeForest-Wisconsin, U.S.A. and Fairfield-Connecticut, U.S.A. during the first half of 2017 into a newly updated and scaled facility, located in the state of Connecticut.  Earlier this month, the Company unveiled its strategic plan, dubbed 5N21, aimed at improving profitability while reducing earnings volatility. The plan is based on three main pillars, namely: a) Optimizing balance of contribution between upstream and downstream activities b) Extracting more value from core businesses, existing assets and capabilities c) Delivering quality growth from existing growth initiatives including future M&A activities.\n\nOver the next few quarters, the Company will transfer a number of product lines from Wellingborough to other manufacturing facilities within the Group. During this time, the Company expects a seamless transition while serving its client base. Operational synergy, cost competitiveness and client proximity are the primary drivers in determining future locations of the affected product lines. The restructuring fees associated with these two initiatives are expected to be around $3.5 million with expected payback of less than two years. The positive impact from these initiatives will be progressive reaching full potential starting in 2018.\n\n\"These measures are tangible actions supporting our 5N21 Strategic Plan and this specific decision is designed to extract more value from our existing assets as we optimize our core businesses. The culmination of these actions will result ...

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