ATLANTA — Superior Essex Inc., one of the largest wire and cable manufacturers in the world, announced that it is consolidating and restructuring its North American magnet wire manufacturing network. The changes are expected to more efficiently match production capabilities to industry demand levels and to customer requirements.
The restructuring includes investment and expansion in the company’s Franklin, Tenn., and Torreon, Mexico, facilities, along with a phased closure of its Vincennes, Ind., facility. This project is expected to be completed by the fourth quarter of 2008.
These actions are expected to result in improved capacity utilization, with associated cost efficiencies, upon completion, estimated at between $7 to $9 million annually, based on current volume levels.
During 2008, the company expects to incur cash charges, currently estimated at approximately $7 million, related to this restructuring. Additionally, non-cash charges of approximately $15 million are expected in 2008, principally through accelerated depreciation.
