Thin-film coatings specialist Southwall Technologies Inc. is completing the transfer of production from its Palo Alto, California, plant to a German subsidiary. The work is being transferred to Southw…
Thin-film coatings specialist Southwall Technologies Inc. is completing the transfer of production from its Palo Alto, California, plant to a German subsidiary. The work is being transferred to Southwall Europe GmbH in Grossrhrsdorf, near Dresden in Germany. The Palo Alto facility will be closed with the loss of 40 jobs. While the company estimates severance costs at USD 300,000, the move is aimed at saving about USD 4 million a year. The transfer should be complete by mid-2006. Southwall said it will scrap or sell its Palo Alto machines. The company makes and markets coated polyester film for automotive and architectural glass, electronic displays and windows. The products are designed to absorb, reflect or transmit light. Following the move, Southwall intends to employ about 44 in non-manufacturing jobs at a relocated California site, 90 in Germany and seven in sales offices. Southwall reported 2005 profit of USD 3.3 million on sales of USD 54.6 million. Shares in the company trade on the Over-the-Counter Bulletin Board. As of 27 February 2006 New York-based investment bank Needham & Co. Inc. and its affiliates owned about 42.4% of Southwall“s outstanding capital stock. Southwall manufactured thin PET film in a leased Tempe, Arizona, facility from 1997 until late 2003. Southwall Europe began operations in a 5,574-square-meter facility in May 2000 and shortened the supply line to the firm“s European customers.