MAYFIELD HEIGHTS, Ohio, Dec. 11, 2012 — Materion Corp. plans to close an optical coatings facility in California and cut its Advanced Materials business in New Mexico in an effort to reduce costs and better serve its global customers.
Richard J. Hipple, chairman, president and CEO, said that the company’s recent acquisitions, coupled with manufacturing improvements, have provided the opportunity to consolidate to reduce cost, operate more efficiently and generate higher future earnings.
Under the plan, Materion will close its Buellton, Calif., facility and consolidate production with operations in Westford, Mass., and Shanghai. The company also will consolidate its Advanced Materials business in Albuquerque, N.M., from four facilities to two, and close its facility in the Czech Republic. Business from the Czech Republic will be consolidated into an existing related facility in Ireland, the company said.
Costs related to these consolidations are expected to negatively affect earnings in the fourth quarter 2012 by about 10 cents per share, with an additional 10 cents per share expected to be incurred in 2013. When combined with the previously announced closure and consolidation of its Newburyport, Mass., operations and other actions taken at its Shanghai facility, the costs and benefits are expected to be neutral to 2013 and to favorably affect earnings by approximately 20 cents per share in 2014.
For more information, visit: www.materion.com