Fleetwood to close Pennsylvania motor home plant

Fri Oct 10, 2008 9:13am EDT
 
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(Adds NEW YORK to dateline; updates from brief)

NEW YORK, Oct 10 (Reuters) - Motor home manufacturer Fleetwood Enterprises Inc FLE.N said on Friday that it would close a Pennsylvania plant in early December, citing a four-year industry slump.

The company will transfer its Paxinos, Pennsylvania, plant's operations to its factory complex in Decatur, Indiana, Fleetwood said in a statement.

The Paxinos plant employs about 325 people.

Fleetwood sees consolidation costs of about $2.2 million in its second quarter, which began on July 28, and $2 million in the third quarter. It is evaluating impairment charges on the plant.

Starting in the fourth quarter, the company forecasts savings of about $1.5 million per quarter. It said cash generated by the end of the third quarter would more than offset the costs of the consolidation. (Reporting by Helen Chernikoff; Editing by Lisa Von Ahn)

 
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