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February 14, 2018 01:00 AM

Unique Fabricating closing second facility

Rubber & Plastics News Staff
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    AUBURN HILLS, Mich.—As part of its goal to streamline operations and position the company for growth, Unique Fabricating Inc. said it would close its Fort Smith, Ark. manufacturing facility in June. It's a move that should save between $600,000 and $700,000 annually, according to the company.

    The closure will affect 20 employees and Unique said it is committed to providing severance and transition assistance for the employees impacted by the closure.

    Scheduled production for the Fort Smith facility will be transitioned to plants in Evansville, Ind., and Monterrey, Mexico.

    Unique believes it will incur charges between $150,000 and $250,000 related to severance costs. Equipment relocation and other closing considerations are expected to total between $400,000 and $500,000.

    "The consolidation of this facility into existing plants will help us to further streamline our manufacturing operations and better position us to grow profitably," Unique Fabricating CEO John Weinhardt said in a statement. "I am confident this rationalization of our production facilities will make us a stronger organization overall and is the best long-term solution for Unique Fabricating and our shareholders."

    Once the closure is complete, Unique plans to sell the facility, which has a $700,000 value, according to the firm.

    This is the second plant closure that Unique has announced in recent weeks. The firm said Feb. 1 that it would close its Port Huron, Mich., facility in March. Annual savings from that plant closure are expected to exceed $200,000 annually.

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