Grand Rapids, MI, March 28--Steelcase said Monday it will further consolidate its North America operations and expects to close several manufacturing facilities in the Grand Rapids area over the next two years.
Production will shift primarily to other Steelcase manufacturing facilities, including other locations in the Grand Rapids area. The company said it expects to cut about 100 salaried and 500 hourly positions and about 2.6 million square feet of manufacturing space in North America under these plans.
Steelcase said it will record pretax restructuring charges of $25 million to $30 million from these actions over the next two years, including employee terminations, asset impairments and production move costs.
In addition, the company expects to post about $4 million to $7 million of pretax disruption costs related to the project. Steelcase said that when this plan is fully implemented, annual pretax savings are expected to range between $35 million and $45 million.
The company also said it will explore options to sell or redevelop land and buildings that will no longer be needed in the business. The net book value of this real estate is about $30 million to $35 million.
