Tecumseh Products Company to Close New Holstein Plant
09 Février 2007 - 8:31PM
PR Newswire (US)
TECUMSEH, Mich., Feb. 9 /PRNewswire-FirstCall/ -- Tecumseh Products
Company (Nasdaq: TECUA; TECUB) today announced that it has informed
the workers in its manufacturing facility in New Holstein,
Wisconsin, of the Company's decision to close the plant, in a
two-stage process that will begin in mid-April. The decision will
affect the 320 workers currently employed at the plant, which
produces component parts for the Company's gasoline engines.
Layoffs associated with the plant closing will begin on or after
April 13, 2007, when the jobs of up to 220 plant workers will end.
The remaining 100 jobs will end on or about August 31. James J.
Bonsall, President and Chief Operating Officer of Tecumseh, said:
"While maintaining several of its U.S. operations, Tecumseh over
the past several years has increasingly outsourced the
manufacturing of components and certain small engines to low-cost
countries, including India, Brazil and China. Making these
strategic moves enhances Tecumseh's ability to compete in the
highly competitive global business environment. The impact of the
decision announced today on Tecumseh's remaining workers in New
Holstein is deeply regrettable, but unavoidable." CAUTIONARY
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS This release may
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject
to the safe harbor provision created by that Act. In addition,
forward-looking statements may be made orally in the future by or
on behalf of the company. Forward-looking statements can be
identified by the use of terms such as "expects," "should," "may,"
"believes," "anticipates," "will," and other future tense and
forward-looking terminology. Readers are cautioned that actual
results may differ materially from those projected as a result of
certain risks and uncertainties, including, but not limited to, i)
changes in business conditions and the economy in general in both
foreign and domestic markets; ii) the effect of terrorist activity
and armed conflict; iii) weather conditions affecting demand for
air conditioners, lawn and garden product, portable power
generators and snow throwers; iv) the success of our ongoing effort
to bring costs in line with projected production levels and product
mix; v) financial market changes, including fluctuations in
interest rates and foreign currency exchange rates; vi) economic
trend factors such as housing starts; vii) emerging governmental
regulations; viii) availability and cost of materials, particularly
commodities, including steel, copper and aluminum, whose cost can
be subject to significant variation; ix) actions of competitors; x)
the ultimate cost of resolving environmental and legal matters; xi)
our ability to profitably develop, manufacture and sell both new
and existing products; xii) the extent of any business disruption
that may result from the restructuring and realignment of our
manufacturing operations or system implementations, the ultimate
cost of those initiatives and the amount of savings actually
realized; xiii) the extent of any business disruption caused by
work stoppages initiated by organized labor unions; xiv) the
ability of the Company to maintain adequate liquidity in total and
within each foreign operation; xv) potential political and economic
adversities that could adversely affect anticipated sales and
production in Brazil; xvi) potential political and economic
adversities that could adversely affect anticipated sales and
production in India, including potential military conflict with
neighboring countries; xvii) our ability to reduce a substantial
amount of costs in the Engine & Power Train group associated
with excess capacity, and xviii) the ongoing financial health of
major customers. The forward-looking statements are made only as of
the date of this report, and we undertake no obligation to update
or revise the forward-looking statements, whether as a result of
new information, future events or otherwise. Contacts: Teresa Hess
Director, Investor Relations Tecumseh Products Company 517-423-8455
or Roy Winnick Kekst and Company 212-521-4842 Press releases and
other investor information can be accessed via the Investor
Relations section of Tecumseh Products Company's Internet web site
at http://www.tecumseh.com/. DATASOURCE: Tecumseh Products Company
CONTACT: Teresa Hess, Director, Investor Relations, of Tecumseh
Products Company, +1-517-423-8455, or ; or Roy Winnick of Kekst and
Company, +1-212-521-4842, or , for Tecumseh Products Company Web
site: http://www.tecumseh.com/ Company News On-Call:
http://www.prnewswire.com/comp/842875.html
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