Unique Fabricating, Inc., a Michigan-based manufacturer of plastic and rubber components for the automotive and industrial appliance markets, announced it will close its manufacturing facility in Fort Smith, Arkansas to further streamline the company's operations, improve efficiency and better position its production assets geographically to support growth.
The company expects to close its Fort Smith manufacturing facility in June 2018 and plans to transfer scheduled production to the company's other existing manufacturing facilities, including plants located in Evansville, Indiana and Monterrey, Nuevo Leon. The decision will impact approximately 20 employees. Unique Fabricating has committed to providing severance and transition assistance to all affected employees.
In connection with this closure, the company expects to incur charges of approximately US$ 150,000 - US$ 250,000 related to severance costs and approximately US$ 400,000 - US$ 500,000 related to equipment relocation, and other closing considerations.
The cost savings to be realized as a result of the closure are expected to be approximately US$ 600,000 - US$ 700,000 annually. The Company will provide an update to investors during their fourth quarter and year-end 2017 earnings conference call.
Following the closure, the company expects to market the facility, which currently has a net book value of approximately US$ 700,000, for sale.
Unique Fabricating, Inc. engineers and manufactures components for customers in the automotive and industrial appliance market. The Company's solutions are comprised of multi-material foam, rubber, and plastic components and utilized in noise, vibration and harshness (NVH) management, acoustical management, water and air sealing, decorative and other functional applications.
Unique leverages proprietary manufacturing processes including die cutting, thermoforming, compression molding, fusion molding, and reaction injection molding to manufacture a wide range of products including air management products, heating ventilating and air conditioning (HVAC), seals, fender stuffers, air ducts, acoustical insulation, door water shields, gas tank pads, light gaskets, topper pads, mirror gaskets and glove box liners.