Oct 4 Kaydon Corp, a maker of specialty
ball bearings for wind turbines, said it would shut a South
Carolina plant and record a charge of $47 million to $52 million
due to the impending expiration of a renewable energy tax credit
and weak markets.
The renewable energy production tax credit, which expires at
the end of this year, provides a tax credit of 2.2 cents per
kilowatt-hour of electricity produced.
President Barack Obama wants the credit renewed but
Republican presidential candidate Mitt Romney supports letting
"(While) wind energy will be a viable market in the long
term, it will be challenged by continued regulatory uncertainty
in the United States, including the impending expiration of the
Production Tax Credit and a weak global economy," Chief
Executive James O'Leary said in a statement.
The wind industry has warned that 37,000 jobs would be lost
if the tax credit is allowed to expire.
Kaydon, which reported a lower second-quarter profit, will
record the charge in its third quarter.
The company will shut one of its three plants in Sumter,
South Carolina, previously devoted to the wind energy and
military ground vehicle markets.
Shares of the company, which has a market value of $726
million, closed at $22.68 on the New York Stock Exchange on