Insteel Industries Announces Consolidation Of Texas Facilities
MOUNT AIRY, N.C., Dec. 8, 2010 /PRNewswire-FirstCall/ -- Insteel Industries, Inc. (Nasdaq: IIIN) today announced that it was closing its leased facility in Houston, Texas and moving the manufacturing to its Dayton, Texas plant. The production equipment at the Houston facility was acquired in connection with Insteel's recent purchase of certain of the assets of Ivy Steel & Wire, Inc. ("Ivy").
The consolidation of the plants is expected to result in the elimination of 67 positions at the Houston facility and the addition of 19 positions at the Dayton plant, which will be offered to the Houston employees, for a net reduction of 48 positions. It is anticipated that operations at the Houston facility will cease by the end of February 2011 and the equipment will be redeployed to other Insteel locations.
"Considering the ongoing weakness in our markets and reduced utilization levels at both Texas facilities, we believe these actions are essential to reducing our operating costs and strengthening our competitive position," said H.O. Woltz III, Insteel's president and chief executive officer. "We do not take the decision to close a facility lightly and are committed to making the transition as smooth as possible for the employees who are impacted."
About InsteelInsteel is one of the nation's largest manufacturers of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including concrete pipe reinforcement, engineered structural mesh ("ESM") and standard welded wire reinforcement. Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North Carolina, Insteel operates eleven manufacturing facilities located in the United States. Cautionary Note Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "believes," "anticipates," "expects," "estimates," "plans," "intends," "may," "should" and similar expressions are intended to identify forward-looking statements. Although Insteel believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, such forward-looking statements are subject to a number of risks and uncertainties, and Insteel can provide no assurances that such plans, intentions or expectations will be achieved. Many of these risks and uncertainties are discussed in detail in Insteel's periodic and other reports and statements that it files with the U.S. Securities and Exchange Commission (the "SEC"), in particular in its Annual Report on Form 10-K for the year ended October 2, 2010. You should carefully review these risks and uncertainties. All forward-looking statements attributable to Insteel or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. All forward-looking statements speak only to the respective dates on which such statements are made and Insteel does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV