By Connor Hart
Insteel Industries will close a facility it acquired last month as part of its acquisition of Engineered Wire Products, citing low capacity utilization levels and dim prospects for improvement.
The Mount Airy, N.C.-based company, which manufactures steel wire reinforcing products for concrete construction applications, said Monday it expects to incur a $1.9 million restructuring charge related to the closure.
The facility, located in Warren, Ohio, will cease operations by the end of the month, with production moved to the company's remaining welded-wire reinforcement production facilities. Up to 35 jobs will be eliminated, the company said.
Insteel acquired the soon-to-close facility last month when its subsidiary, Insteel Wire Products, acquired Engineered Wire Products for $70 million with cash on hand. The purchase, the company said at the time, would expand its geographic footprint and make it more competitive in the Midwest.
"We believe this action is essential to reducing our operating costs and strengthening our competitive position," Chief Executive H.O. Woltz III said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 18, 2024 16:25 ET (21:25 GMT)
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