Lancaster Colony Corporation announced 21 March 2007 that as part of its strategic alternative review of non-food operations the company will be closing its industrial glass operation located in Lanca…
Lancaster Colony Corporation announced 21 March 2007 that as part of its strategic alternative review of non-food operations the company will be closing its industrial glass operation located in Lancaster, Ohio. Production at the manufacturing facility is anticipated to be largely phased out by 30 June 2007. It is expected that active business operations will effectively cease by the end of the calendar year upon the anticipated completion of certain sales and distribution activities. Based on initial estimates, the company anticipates total pretax charges in the range of USD 5 to USD 7 million for this closure. The company expects to incur a 3Q pretax charge in the range of USD 2 to USD 3 million, with the remainder to be incurred over the balance of calendar 2007. The charges will include costs such as one-time termination benefits and other employee benefits costs, including those related to the union defined benefit pension plan, charges for asset write offs, costs associated with disposal-related activities and accelerated depreciation of certain property, plant and equipment. John B. Gerlach, Jr., chairman and CEO of Lancaster Colony Corporation, said, “The decision to close our Lancaster Glass business results from continuing declines in volume and profitability. Although we expect this action will ultimately contribute to improved financial performance of the company, we regret the challenges this creates for what has been an able workforce and a solid community in which to conduct business. We are attempting to minimize the disruption to our customers by shipping product over an extended shutdown period.” Third party net sales of the operation for the year ended 30 June 2006 totaled less than USD 10 million.
