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Dietrich to Consolidate Five Metal Framing Facilities
Sep. 26, 2007 Worthington Industries plans to implement a consolidation plan at five of its Dietrich Metal Framing locations.
Facilities affected by the consolidation plan include East Chicago, Ind.; Rock Hill, S.C.; Phoenix, Ariz.; Wildwood, Fla.; and the downsizing of operations in Montreal, Canada. The Rock Hill facility also houses a Worthington steel processing operation that will continue to operate. The closures will impact approximately 165 employees.
Annual net sales generated by these operations total approximately $125 million. The company expects that the majority of those sales will be handled by nearby Dietrich locations.
“Today’s action is a result of our focus on asset utilization to ensure that our businesses are maximizing profitability,” said John P. McConnell, Chairman and CEO of Worthington Industries. “Although the consolidation will reduce Dietrich’s footprint, we have chosen locations in close proximity to other Dietrich facilities to maintain our customer service. We continue to have the largest reach to markets through our national distribution network.”
The company expects the consolidation plan to result in $9 million in annual savings and be fully implemented by the end of the year. One-time restructuring charges, estimated to be $15 million in the aggregate for the five facilities, will be incurred over the next few quarters until the plan is completed.
Dietrich Metal Framing is the largest manufacturer of steel framing products in the United States. Dietrich’s 2000 employees in 26 facilities use state-of-the-art equipment and in-house metallurgical labs to ensure superior product performances and competitive prices. Founded in 1959, Dietrich Metal Framing is a Worthington Industries company.
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is a premier North American value-added steel processor and a leader in manufactured metal products such as metal framing, metal ceiling grid systems, pressure cylinders, automotive past model service stampings, and laser welded blanks. The company employs more than 8000 people and operates 67 facilities in 10 countries.
Founded in 1955, the company operates under a long-standing corporate philosophy rooted in the golden rule, with earning money for its shareholders as the first corporate goal. This philosophy, an unwavering commitment to the customer, and one of the strongest employee/employer partnerships in American industry serve as the company’s foundation.