MISSISSAUGA, Ont. (AP) -- MTI Global Inc., a Toronto-area maker of engineered products using silicone, says it will close its Buchanan, Va., plant and move the operations and equipment to other silicone plants in the United States.
The jobs impact from the streamlining, announced Monday, was not revealed.
However, MTI said that from 2009 onwards, the company expects annual cost savings of between US$500,000 and US$1 million from the move.
''The age and inefficient layout of the Buchanan facility, the projected costs of needed repairs, and the high cost of fuel oil were some the deciding factors to close the facility,'' the Mississauga, Ont. company said in a release.
The company had previously announced it wanted to consolidate its three U.S. silicone operations into two. The equipment and production will be moved to the company's plants in Milton, Fla. and Richmond, Va.
MTI Global designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The company's main customers are in the aerospace and mass transit markets.
In Monday trading on the TSX, MTI shares were unchanged at 33 cents.
