Xerium Technologies, Inc. announced plans to close its rolls facility in Heidenheim, Germany. The company says it has initiated consultation proceedings with the works council at the facility. Production after a closure would be transferred to the company's remaining rolls facilities in Europe where there it says there is sufficient capacity to handle Heidenheim's order volume. Due to the nature of the proceedings with the local works council, the company is not able to provide an estimate of the anticipated restructuring expenses at this time, but does expect permanent annualized cost savings of $2.1 million from this action.
"We are continuing our multi-year program to strengthen our competitiveness globally. It requires difficult decisions that affect great people but these are very necessary actions given the economic realities of the markets we serve. We have firm plans to save as many jobs as possible under these circumstances," says Harold Bevis, Xerium's president and CEO. "We believe these actions will increase our competitiveness in Europe, without sacrificing quality or our position in the market."