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[June 2008]
Ferro Announces Additional Manufacturing Restructuring and Expense Reduction Initiatives
Ferro Corp (Cleveland, OH, USA) announced on 20 June 2008 that it planned to take additional actions to rationalise manufacturing and reduce expenses world-wide.
Firstly, the company said it would discontinue manufacturing tile frits and tile colour products at its facilities in Americana, Brazil by the end of June 2008. Colour products required by Brazilian customers after this time will be provided by Ferro facilities in Mexico and Spain.
"We believe these changes will allow us to reduce our operating costs and compete more effectively in the important north Brazil market," said John Kelly, Latin American Business Manager, Inorganic Specialties Group. "We will continue to provide the high-quality color products and technical service that tile manufacturers need to be successful and will work closely with our customers to ensure a smooth transition through these changes."
Ferro will continue to produce porcelain enamel frit and glass colour and glaze products at the Americana site. The company said that discontinuing tile colour materials production will reduce employment at the Brazilian location by approximately 73 positions and annual savings are expected to be approximately US$2 million to US$2.5 million.
Secondly, Ferro said it would take additional actions in its Inorganic Specialties business as a part of its continuing initiatives to reduce expenses. As a result of these actions, the company expects to reduce employment by approximately 13 positions, primarily in Europe and Asia, and to record a pre-tax charge of approximately US$2.2 million related to severance costs in the quarter ended 30 June 2008.
www.ferro.com
ENDS