Myers Industries to Close Fostoria, OH Facility
Myers Industries, Inc. announced that it is closing its Fostoria, OH manufacturing facility. The plant is one of three Ameri-Kart™ facilities in the Company’s Automotive and Custom Segment producing custom plastic products for industrial, heavy truck and other markets. Current operations will be shifted to the Company’s larger manufacturing facilities in that segment, and the closure is expected to be completed during the second quarter and the facility held for sale. Approximately 50 employees will be affected by the closure.
Myers Industries expects to record net pre-tax expenses of approximately $1.5 million, of which approximately 20% will be cash expenses, with an overall cash payback expected within six months. These expenses will be presented in the Company’s financial statements over the next several quarters.
President and Chief Executive Officer John C. Orr commented, “Fostoria’s closure is a difficult but necessary move due to the downturn in industrial, heavy truck and other markets that started in 2007. This has caused the Fostoria facility to operate at far less capacity than is practical for a prolonged period. As we continue to pursue opportunities that improve the cost structure and competitiveness of our businesses, consolidating operations to larger facilities will help to reduce our overall operating costs.”
The Company will make every effort to help employees through this transition. In addition to severance and benefit continuation, employees will be offered outplacement assistance.
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