Commercial Vehicle Group is to close its Vancouver (Washington state) manufacturing facility, with the work currently performed there distributed to other CVG plants in North America.

The Vancouver unit produces interior soft trim and moulded dash assemblies for the heavy truck industry as well as moulded products for the gaming and material handling industries. The facility is approximately 62,000 sq ft of leased space and currently employees approximately 60 hourly and 11 salary employees who will be affected by the closure. At its peak, the facility employed over 200 workers.

"This was a regrettable, but necessary step in response to current market conditions. This extended downturn in the national and global economies has impacted our industry and end users particularly hard, which has forced us to examine our entire manufacturing footprint and consolidate operations to further reduce costs and create operational efficiencies in line with current market realities," said Jerry Armstrong, president of cab systems. "We regret the impact which this action will have on our Vancouver employees and their families, and we will assist them during this difficult time to help transition their lives," added Armstrong.

The costs associated with the restructuring plan, is thought to be around C$800,000 which includes severance, facility shutdown costs, contractual costs and costs to relocate equipment and assets. The company estimated the closure would be substantially complete by the end of July.

The company anticipated booking a net pre-tax cost of about $400,000 in 2009 and $700,000 in annual cost savings thereafter.