A. Schulman, Inc. (SHLM) Monday said it would close its Invision sheet production line at Sharon Center, Ohio manufacturing facility by the end of fourth quarter of fiscal year 2009. The company said it would no longer make Invision sheets.
The closing is expected to result in non-cash charges in the range of $6.0 million to $8.0 million related to the production equipment for the Invision sheet business and less than $0.1 million in cash charges for termination benefits and other employee costs in the fourth quarter of fiscal 2009.
The plan to close Sharon Center production unit was approved by A. Schulman board on Thursday June 25, following the failure of the company to find a strategic partner or suitable buyer for the facility.
As a result of the closing, the company would, however, save around $2.0 million to $3.0 million annually, beginning fiscal year 2010. The closing would also eliminate four positions at the plant.
A. Schulman also said it would now continue to offer Invision resins, technologies and services to sheet and thermoforming customers through its North American Engineered Plastics business, but would no longer manufacture Invision sheet.
A core group would also be maintained by the company to support its sheet color matching, new product development, process development, and licensing for the ongoing portion of the business.
SHLM is currently trading at $15.50, up $0.38 or 2.51% on the Nasdaq.
For comments and feedback: editorial@rttnews.com