Global Power Equipment Group Inc. today announced that it completed the sale of its facility in Nuevo Leon, Mexico, and the auction of the remaining production equipment and other assets for anticipated net proceeds of approximately US$ 3.5 million.
Approximately US$ 1.5 million of the net proceeds from the sale of the facility and equipment will be used to reduce debt and the remainder will be used to fund working capital requirements.
The facility supported fabrication of auxiliary equipment for utility-scale natural gas turbines.
The sale of its 135,000 square feet plant in Monterrey was part of several initiatives announced in August 2016 to restructure its operations, lower its operating costs and reduce indebtedness.
“The closure of the manufacturing facility will eliminate unnecessary fixed costs and further leverage our successful outsourced manufacturing model that has been integral to our overall Braden operations for many years,” said the company in a statement announcing the initiatives.
The company noted it will continue to maintain active operations in Mexico with an engineering, execution and sales office.
Global Power is a provider of custom-engineered auxiliary equipment and maintenance support services for the global power generation industry.
Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts such as seals, shims and brackets.