Clarcor Inc. said Wednesday its Board of Directors approved a capital spending and restructuring program aimed at improving operating efficiencies and reducing manufacturing costs at its Air Filtration Products subsidiary, which manufactures and sells air filtration products and systems.
The program is designed to be implemented in several phases over a three-year period. The company plans to invest $22 million in capital and incur $4 million in restructuring charges over the period and expects annualized savings to reach approximately $14 million by the end of the program.
"The capital investment we are making will be focused on expanding and reorganizing our production facilities to better serve our customers," said Norm Johnson, Clarcor's Chairman and Chief Executive Officer. "We expect to significantly improve plant productivity through a major investment in automation to make our air filtration plants the most technically advanced in the industry. We also will make a major investment to reduce our freight costs which have risen substantially over the last 18 months."