SuperiorIndustries To Close Manufacturing Plant In Rogers, Cut 500 Jobs

(RTTNews) - SuperiorIndustries International Inc. (SUP), manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America, announced Wednesday that it will close its manufacturing facility in Rogers, Arkansas, as part of an initiative to reduce costs and enhance its global competitive position.

The company said it expects to cease operations at Rogers by the end of this year. The closure will result in scheduled production being shifted to other Superior manufacturing facilities, including those in Fayetteville, Arkansas, and Chihuahua, Mexico, and is anticipated to generate a net $15 million labor cost savings year-over-year, resulting from a workforce reduction of approximately 500 employees.

As a result of the closure, Superior expects to incur severance costs estimated to be $2.0-2.5 million. At June 29, 2014, the close of Superior's second quarter, the net book value of fixed assets and manufacturing equipment at the Rogers location was approximately $22 million. Asset related charges in connection with the closing have yet to be determined, but are expected to be recorded primarily in the third and fourth quarters of 2014. Other costs to be incurred as part of the closure also have not yet been determined.