Camco, which makes, markets, and services home appliances, said it will cease manufacturing and warehouse operations at its plant in Hamilton, Ontario, Canada in December 2004, resulting in the loss of about 800 jobs.
In a press release, the company said the plant is no longer a viable operation due to lack of volume, overcapacity in the appliance industry, and the facility's inability to compete against newer and larger global manufacturing plants.
As a result of the closure, Camco expects to take an after-tax charge of C$64 million in the fourth quarter.
Camco Inc. said about 730 unionized workers, represented by the Canadian Auto Workers Union, and 70 salaried employees will be terminated in December 2004.
The company said the C$64 million after-tax charge consists of a provision for employee severance costs of C$19 million after tax; a provision of C$23 million after tax for pension wind-up expenses; and a writedown of C$23 million after tax for impaired plant and equipment assets.
It noted that, although the company will be recording a provision in the fourth quarter, actual cash disbursements will be made upon plant closure.
Camco said that, despite the Hamilton plant closure, it will continue to operate its Montreal manufacturing facility and its Canadian distribution and service functions. (Reuters)
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