HNI to consolidate hearth products manufacturing facilities

Aug 13 (Reuters) - HNI Corp (HNI.N) said it would transfer "significant" production from its Mount Pleasant, Iowa plant to other existing hearth products manufacturing facilities to save costs.

The company, which makes office furniture and hearth products, also said it will close hearth products distribution centers in Alsip, Illinois and Lake City, Minnesota and transfer operations to Mount Pleasant.

HNI expects to incur pre-tax costs of about $5.1 million in 2009 and 2010, it said in a regulatory filing with the U.S. Securities and Exchange Commission.

The company said it will begin making these changes immediately and expects to complete them during the first quarter of 2010.

It sees savings of $4.7 million annually beginning in 2010.

HNI, which has been hit by rising office vacancies and corporate downsizing, has already closed and consolidated a few office furniture manufacturing facilities to cut cots.

Shares of HNI closed at $22.20 Thursday on the New York Stock Exchange. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anne Pallivathuckal) ((ananthalakshmi.as@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ananthalakshmi.as.reuters.com@reuters.net))