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The Company expects this plant closure to improve its market competitiveness and to better position its Pressure Sensitive Materials business for long-term growth. Management expects to discontinue operations at this location in May 2014. The headquarters of the Pressure Sensitive Materials business will remain in Stow, Ohio. The manufacturing facility recorded 2013 annual net sales of approximately $45 million. The facility, started in 1959, primarily manufactures solvent-based pressure sensitive materials.
The Stow plant workforce includes approximately 115 employees. The Company recognizes that these changes will have a significant impact on employees and their families and intends to offer transition services to affected employees to aid in their search for new employment.
In 2014, the Company will record a pre-tax charge related to the plant closure of approximately $30 million which includes estimated costs related to the settlement of a multi-employer pension liability, employee severance and benefit costs, and fixed asset related costs.
FORWARD LOOKING STATEMENTS
Statements in this release that are not historical, including statements relating to the expected future performance of the Company, are considered "forward-looking" and are presented pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such content is subject to certain risks and uncertainties, including but not limited to changes in estimates related to plant closures. Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors which are detailed in the Company's regular SEC filings including the most recently filed Form 10-K for the year ended December 31, 2013.
