PPT Slide

Restructuring Initiative

• Primarily designed to improve manufacturing efficiency

• Closure of 14 facilities in  North America, Europe and Latin America

• Transfer of production to  other plants

• Will save at least $12 million annually

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AMONG OUR MOST DIFFICULT CHALLENGES IN 2002 WAS A MAJOR RESTRUCTURING INITIATIVE. PRIMARILY DESIGNED TO IMPROVE MANUFACTURING EFFICIENCY, IT ENTAILED THE CLOSURE OF 14 FACILITIES IN NORTH AMERICA, EUROPE AND LATIN AMERICA, AND THE TRANSFER OF PRODUCTION TO OTHER PLANTS. TOGETHER WITH OTHER COMPONENTS OF THE RESTRUCTURING, IT IS EXPECTED TO SAVE US AT LEAST $12 MILLION ANNUALLY.

ALTHOUGH A NECESSARY STEP, THIS WAS NONETHELESS A TOUGH TASK AS WE ELIMINATED JOBS, REDUCING OUR WORK FORCE BY ABOUT 5 PERCENT.

NO ORGANIZATION EVER MAKES THIS TYPE OF MOVE WITHOUT GREAT CONSIDERATION OF THE IMPACT. TO ENSURE THAT IT WAS HANDLED SUCCESSFULLY IN ALL ASPECTS, APPROXIMATELY 250 EMPLOYEES WERE ENGAGED ON 13 TEAMS.