USA: Spanish factory closure to cost TRW $31 million
TRW Automotive Holdings has received final approval from a government agency for the planned closure of its Burgos, Spain manufacturing facility.
The company initially disclosed its plans to close the facility, along with an estimate for minimum related costs, last January.
The closure is part of the TRW's cost rationalisation efforts to improve capacity utilisation and overall efficiency of its global operations.
TRW will incur pre-tax cash restructuring charges relating to severance, retention and outplacement services of approximately $US31 million.
The facility will be closed in the third quarter of 2005, and the restructuring charges, previously expected to be incurred in the second quarter, will now be reflected in third quarter financial results.