Date Announced: 18 Nov 2013
Site closure to save up to $1 million per year.
NORTHVALE, N.J., Nov. 18, 2013 /PRNewswire/ -- Inrad Optics (INRD), a manufacturer of electro-optic crystalline materials and devices, fabricated high precision glass and metal optical components, has announced plans to move the operations of its Sarasota, FL metal optics facility to its Northvale, NJ optical production center and corporate headquarters.
The consolidation is part of a larger strategic effort to improve the company's value proposition to its customers as well as improve its financial results. The physical integration of all development and production in one location is intended to enhance operating efficiencies and reduce overhead costs.
The move will also centralize the company's optical problem solving skills, allowing for beneficial cross-pollination of expertise, including leveraging the Florida metal optics facility's single point diamond turning capability over a broader range of optical materials.
The decision also reflects the continued uncertainty in US defense funding. Much of the company's metal optics business serves US government installations and defense prime contractors. The company has seen a falloff in bookings from these two customer groups in the first three quarters of 2013.
The Sarasota plant will go through a gradual transfer of operations to ensure no interruption to customers during the transition. While no official facility closure date has been finalized, Inrad Optics anticipates operations in Sarasota will be fully transferred by approximately March 31, 2014.
CEO and President Amy Eskilson commented on the plan, "The consolidation of our metal optics facility into the New Jersey headquarters presents an opportunity to integrate all of our unique resources into one optimized facility, and will offer our customers a strengthened set of build-to-print capabilities and products. Additionally, the consolidation will allow the company to make significant improvements to our operating results."
The company expects to incur one-time cash charges of approximately $750,000 to $900,000, primarily associated with employee termination and relocation, moving of equipment, preparation of the Northvale facility and other general costs associated with consolidation. Overall annual reductions in operational costs are expected to be in the range of $800,000 to $1,000,000 per year starting in the second quarter of 2014.
Source: Inrad Optics
E-mail: via web site
Web Site: www.inradoptics.com/
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