Superior Industries to cut US workforce by 29 pct
(Reuters) - Aluminum wheel maker Superior Industries International Inc (SUP.N) said it will be reducing 29 percent of its U.S. workforce and close a plant in Kansas, as part of a plan to cut costs.
The company, which supplies cast and forged aluminum wheels to the automobile and light truck makers, will cut 755 positions and close its Pittsburgh plant, effective December 19, 2008. About 600 positions are likely to be affected by the plant closure alone.
Superior Industries expects to record severance and impairment charges of about $1.8 million over the next six months, due to the plant closure.
The company also expects to incur additional severance costs of $296,000 related to the additional layoffs.
In a statement, the company also said asset impairment charges are yet to be determined, but will be recorded in the current quarter ending September 30.
"The plant closure is necessary to eliminate excess wheel production capacity, enhance our overall efficiency, and move production to other manufacturing plants to improve our global capacity utilization," Chief executive Steven Borick said.
Shares of the company were trading up 6 cents at $18.79 in morning trade on the New York Stock exchange.
(Reporting by Biswarup Gooptu in Bangalore; Editing by Anil D'Silva)
