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Chart Consolidates Liquid O2 Therapy Operations- 4/6/2010
CAIRE, which operates under Chart Industries’ BioMedical segment, will close its liquid oxygen therapy manufacturing operations in Plainfield, Indiana, and relocate the manufacturing and customer service operations to a facility close to existing operations in Canton, Georgia, where it manufactures the same product line. The Plainfield manufacturing and customer service operations were acquired in November 2009 as part of the acquisition of Covidien's liquid oxygen therapy business.
"Over the past five months since the acquisition of the liquid oxygen therapy business from Covidien, we have been analyzing the most effective way to rationalize this business. We have concluded that the consolidation of the manufacturing and customer service operations into our Canton, Georgia, campus is the most cost-effective solution to meet our customers' needs," stated Steve Shaw, president of Chart's BioMedical Group.
It will take approximately 12 months to relocate the operations to Canton. Approximately 130 employees will be affected, and the company will provide assistance to help employees seeking new jobs.
The anticipated restructuring costs associated with the closure of the Plainfield manufacturing operations and relocation of the operations to Canton were included in Chart's 2010 earnings estimates that were announced when Chart reported 2009 year end results on February 24, 2010. As a result, the impact of this closure is included in the company's previously disclosed 2010 forecasted earnings guidance of $0.40 to $0.60 per fully diluted share, which includes expected charges of approximately $0.20 per share for restructuring, acquisition related and write-off of deferred financing costs.