Evercel Announces Closing of Virginia Facility
Evercel Inc. (Danbury, CT) announced the closing of its Newport News, VA, production facility and consolidation of manufacturing in China. Manufacturing will be shifted to the company’s joint venture facility in Xiamen, China.
"These decisions were difficult but absolutely necessary in order to ensure the long-term viability of the company and its products," said Garry Prime, president and CEO. "The lack of a market that is sufficient to justify the high-volume requirements of the Virginia facility, combined with the continued manufacturing difficulties, made this the right decision going forward."
The company estimates that these steps will result in a write-off of approximately $14.5 million to $16.5 million in the third quarter of 2001. This estimate includes charges for equipment, inventory, personnel costs and a tentative settlement of the company’s lease obligations in Virginia.