Power-One Announces Closing Of Dominican Republic Facility

May 26, 2009 by Jeff Shepard

Power-One, Inc. announced plans to close its Dominican Republic facility by the end of the first quarter in 2010.

The facility in the Dominican Republic employs approximately 900 people in the manufacture of the company’s custom and standard ac-dc and dc-dc product lines. Severance and other closure costs are expected to be approximately $13 to $15 million to be incurred through the second quarter of the fiscal year 2010, including certain non-cash charges of approximately $3 to $5 million. The company will transition the products to its plant located in China, its joint venture in China and to contract manufacturers. Power-One expects to realize an annual savings of approximately $14 to $15 million from the closing of the facility.

"The decision to close the Dominican Republic facility was a difficult but necessary one, and we deeply regret the impact that the closure will have on our employees," said Richard Thompson, Chief Executive Officer of Power-One. "Realigning our global manufacturing and sourcing was an essential step in advancing our strategic initiatives and further improving operational performance to position the company for long-term growth. This restructuring action creates a more efficient manufacturing model that improves our ability to respond to customer requirements in a cost-effective manner."