Business
NN, Inc. Announces Closure of Manufacturing Facility in Irvine, California
CHARLOTTE, N.C., Oct. 13, 2022 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced that it will close its
About this update from Nn, Inc.
[{"type":"text","content":"CHARLOTTE, N.C., Oct. 13, 2022 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced that it will close its manufacturing facility in Irvine, California. The decision is part of NN’s strategic shift to focus on organic growth opportunities in the rapidly growing electric vehicle and electric infrastructure markets, and its ongoing efforts to optimize the Company’s manufacturing footprint and improve profitability and cash flow generation. NN has initiated a total of five plant closures in 2022 and expects to complete all closures by March 2023. The closure of the Irvine facility follows the closure of the Company’s Taunton, Massachusetts facility announced in February 2022. Both the Irvine and Taunton facilities served the Aerospace, Defense and Medical (AD&M) markets. NN expects to relocate the production of most of its medical related business to other NN facilities. “As we continue our ongoing initiatives to improve our overall cost structure and optimize our operational footprint, NN thoroughly evaluated a number of potential alternatives to address the under-utilization of our AD&M facilities and their respective impact to our profitability and free cash flow. After a thorough review, consistent with our assessment of the Taunton facility, we concluded that the rationalization of the Irvine facility represents the best option to achieve our long-term strategic objectives. With this decision, we expect to complete the closure by the first quarter of 2023,” said Warren Veltman, President and Chief Executive Officer of NN. Mike Felcher, NN Senior Vice President and CFO, commented, “We remain committed to improving NN’s financial results and driving enhanced free cash flow generation while maintaining the strength of our balance sheet and liquidity to invest in long-term growth initiatives. Through the first six months of 2022, the under-utilization of the Irvine and Taunton facilities resulted in an operating loss of $5.6 million which included approximately $1.1 million of depreciation. By rationalizing our manufacturing footprint, we believe that this will improve both our near-term and long-term financial results as we look forward to 2023.” The closure of the Irvine plant will affect approximately 55 salaried and hourly employees. NN expects to incur costs of approximately $1 millio...