Thursday, July 06, 2006
Closing South Boston plant will cost O'Sullivan $6.2 million
It's not cheap to close a manufacturing facility.
In documents filed Wednesday with the Securities and Exchange Commission, O'Sullivan Industries said it would cost $6.2 million to close its South Boston, Va. facility, including:
-impairment charge against machinery and equipment $4,700,000
-severance and personnel 480,000
-relocation, recruitment and training 685,000
-facility preparation and shutdown 220,000
What "relocation, recruitment and training" means as far as the previously announced addition of 150 jobs over the next 12 months at the Lamar facility was not specified in the document.
The filing also included the news that O'Sullivan has transferred ownership of its United Kingdom interests to a company formed by the former manager of the U. K. office.