Maytag said Monday it expects to close its laundry plant in Florence, S.C., by early next year, citing the need to reduce excess capacity. The decision to close the plant will affect about 60 workers.
“Our Florence employees are a hard working and dedicated group, but in today’s highly competitive global marketplace, we can no longer afford to keep underutilized plants open,” said Steve Ingham, a Maytag senior vice president.
Restructuring charges associated with the plant closing are expected to be $40 million to $50 million, primarily for asset write-down and accelerated depreciation. The cash portion of these charges is expected to be approximately $10 million related to severance and fulfilling purchase commitments, according to a news release from the company.
Besides Florence, Maytag has three other laundry manufacturing plants in Arkansas, Illinois, and Iowa.
Maytag, based in Newton, is in the process of being bought by rival Whirlpool Corp. for $1.79 billion, or $21 a share. Including the assumption of $977 million of Maytag debt, the entire deal is valued at about $2.7 billion.
Maytag shareholders will vote on the proposed purchase by Benton Harbor, Mich.-based Whirlpool on Dec. 16.
Justice Department officials are reviewing the antitrust implications of the deal, which would consolidate major portions of the appliance industry in one company.
From SeattlePi.com