Killingly manufacturer Rogers Corp. will spend about $3 million to close a money-losing German plant and transfer its operations to its Carol Stream, Ill., facility, a regulatory filing shows.
Rogers declared in late May its intention to shut its leased plant in Bremen, Germany, that makes silicone materials. Those operations are being consolidated into Carol Stream.
Rogers bought the Bremen operation as part of its 2009 acquisition of certain assets of MTI Global Inc., but said the German facility has never been profitable,
In its latest 8-K filing with the Securities and Exchange Commission, the company said $900,000 of the cost is tied to early termination its lease on the 68,000-square-foot building.
Another $800,000 is for separation pay for some 33 plant workers. It will spend $200,000 to remove and transport some of the manufacturing equipment and clean the building before handing the keys back to the landlord, the filing said.
The remaining $1.1 million is tied to impairment costs on certain assets and other related charges.
Rogers said about $2.7 million of the charges will be taken this second quarter, with the remainder spread over the third and fourth quarters.