Toro to close Evansville, Ind., plant; production to shift to Tomah, Wis., and Windom, Minn.
The Toro Company (NYSE:TTC) today announced a decision to close its Evansville, Ind., plant and shift manufacturing to Toro’s Tomah, Wis., and Windom, Minn. plants. The move is part of the company’s long-term strategy to strengthen operations and leverage enterprise-wide manufacturing assets.
The move will affect about 94 employees. The company expects to record a restructuring and asset impairment charge of approximately $0.8 to $1.0 million in fiscal 2002. The move is expected to provide annual savings of about $2.0 to $2.3 million beginning in 2003. Manufacturing will be phased out by June 15, 2002, with inventory and equipment transfers to be completed 60 to 90 days later. Toro’s Evansville plant produced Toro and Exmark-branded grounds maintenance and sports turf spraying equipment. Toro has leased manufacturing space at the Evansville site since its acquisition of Hahn, Inc., in 1995.
“Organizational restructuring is always hard and the closing of this plant in no way reflects on the dedication and quality of work of the individuals involved,” said Kendrick B. Melrose, chairman and chief executive officer of Toro. “But these are difficult economic times which require us to proactively seek ways to make Toro more efficient and effective. Making this move now will help us achieve our goals in fiscal 2002 and beyond.”