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Modine Plans Korea Staff Buyouts

TSC and IRIS Staff

Modine Manufacturing(MOD Quote) offered a voluntary early retirement program to workers at its Asan City, South Korea facility.

The company said the facility employs 272 salaried workers and about 13% have accepted the early retirement package.

The initiative will result in the company taking a charge of about $2.5 million in the fourth quarter ended March 31, it said.

Modine said it will give an overview of the program when it releases its full-year fiscal 2006 earnings in early May.

"Our cost position in South Korea has put us at a competitive disadvantage, the company said. "For this reason, we've taken steps to offer appropriate incentives to employees to remain competitive."

The company's stock was trading at $29.89, up 81 cents.