General Cable Corp., Highland Heights, Ky., said it will significantly reduce operations at its Marion, Ind., manufacturing facility. Most of the product lines currently manufactured in the plant will be moved to other General Cable facilities.
The company said the move will result in a charge of about $16 million. The company estimates that about $10 million of the charge will be taken in the fourth quarter of 2003. The remainder will be taken in the first half of 2004.
The company said the move is in response to the “prolonged and unprecedented decline in the North American industrial cable market.”
“I am confident that it will allow us to continue on the path of becoming the low-cost producer in the industrial and specialty cables market while maintaining ample capacity for the improving demand we have recently begun to see,” said Gregory B. Kenny, president and chief executive officer of General Cable.
The company is continuing to review the operations of its South Hadley, Mass., facility for possible rationalization.
The Marion plant will remain open and employ approximately 65 people.
The decision to reduce operations at the facility stems from the feasibility study announced on Oct. 28, 2003.