Austria“s Radex-Heraklith (RHI AG), a maker of fireproof materials, said it would close 10 plants in the US in 2000 and 2001 after completing its friendly takeover of Global Industrial Technologies I…
Austria“s Radex-Heraklith (RHI AG), a maker of fireproof materials, said it would close 10 plants in the US in 2000 and 2001 after completing its friendly takeover of Global Industrial Technologies Inc. Dallas-based Global Industrial“s main asset is fireproofing materials maker Harbison Walker. The takeover cost RHI some US$ 540 million, including assumption of debt. RHI had planned to shut seven or eight plants this year but the restructuring strategy – which will be completed in March – had been revised after an internal audit of Harbison Walker, according to chief executive Georg Obermeier. “We carried out an intensive inspection of the works, the customer structure and logistics,” Obermeier said. Five Harbison Walker plants will be closed, together with five from RHI“s US subsidiary Narco. Some 600 jobs, or 10% of the workforce in the US, Canada and Mexico, would be shed this year as originally planned and annual cost savings estimated conservatively at US$ 30 million would be booked from 2001, he said. Capacity would be increased at the remaining 15 sites in the three countries. RHI spokesman Peter Hofmann said the group was planning to invest US$ 20 million in the NAFTA states this year.