Insteel Industries Announces Consolidation Of Northeast Facilities
MOUNT AIRY, N.C., Dec. 17, 2010 /PRNewswire-FirstCall/ -- Insteel Industries, Inc. (NasdaqGS: IIIN) today announced that it was closing its facility in Wilmington, Delaware and moving the manufacturing to its Hazleton, Pennsylvania plant. The Hazleton plant 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 49 positions at the Wilmington facility and the addition of 15 positions at the Hazleton plant, for a net reduction of 34 positions. It is anticipated that operations at the Wilmington facility will cease by the end of March 2011 and the equipment will be redeployed to other Insteel locations.
"We believe the actions that we are taking to consolidate our Northeast manufacturing operations will enhance our competitive position by realigning our capacity and reducing operating costs in what continues to be a challenging market environment," said H.O. Woltz III, Insteel's president and chief executive officer. "Our decision was made only after thoroughly reviewing other alternatives, and we regret having to take these actions considering the contributions our Wilmington employees have made over the years."
These actions follow Insteel's previous announcement on December 8, 2010 that it would consolidate its Texas manufacturing activities at its Dayton plant and cease operations at its leased facility in Houston by the end of February 2011. While further cost reduction initiatives are expected to be pursued, the Company does not anticipate any additional plant closings at this time.About Insteel Insteel 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 currently 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.
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