Newell Rubbermaid Inc.
(NWL), a global marketer of consumer and commercial products, recently announced plans to close its office products manufacturing plant in Janesville, Wisconsin, to address key structural issues and improve profitability.
The company would relocate its manufacturing and distribution activities to Mexico, and shift the administrative jobs to other existing facilities in the U.S. Newell plans to utilize the excess capacity in its office products facility in Mexicali, Mexico, for manufacturing functions.
The restructuring would increase the profitability of the company through improved efficiencies. The move was further influenced by the continued economic downturn in the U.S. Newell is expected to cease operations in the plant, formerly a manufacturing hub for the world-famous Parker Pen, by the end of the first quarter of 2010.
The closure would result in a lay-off of 153 employees. Newell would offer transition services to these employees, including assistance for resume preparation and for honing interview skills. The company also plans to work in association with state and federal officials to provide additional transition benefits and separation pay benefits based on seniority and experience.
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