NNBR - NN to close manufacturing plant in Irvine California

• NN ( NASDAQ: NNBR ) said Thursday it will close its manufacturing facility in Irvine, California to focus on organic growth opportunities in the electric vehicle and electric infrastructure markets, optimize its manufacturing footprint, and improve profitability and cash flow generation.
• The closure is expected to be completed by Q1 2023.
• NNBR initiated five plant closures in 2022 and expects to complete them by Mar. 2023.
• The closure of the Irvine plant will affect ~55 employees and NNBR expects to incur costs of ~$1M for severance and equipment relocation.
• NNBR also expects to sublease the facility upon exit, which could result in additional costs.
• The closure of the Irvine plant follows the shuttering of NNBR's Taunton, Massachusetts facility .
• Both facilities served the aerospace, defense and medical markets.
• "Through the first six months of 2022, under-utilization of the Irvine and Taunton facilities resulted in operating loss of $5.6M, which included ~$1.1M of depreciation," said NNBR CFO Mike Felcher.
• NNBR expects to relocate production of most of its medical related business to other facilities.

For further details see: