PKC Group says it is to close its factory in Nogales, Mexico, to “further adapt and align manufacturing capacity to the North American customer base.”
The Nogales production will be transferred to PKC’s existing facility in Torreon, Mexico.
The company says the decision is related to current light vehicle programme build-outs in North America and PKC’s focus on maximising opportunities in the current core customer segments.
Related non-recurring items are estimated to be around EUR3.6m (US$4.9m) on an after-tax basis.
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Estimated annual savings are around EUR2m on an after tax basis from 2014 onwards.
The measures are expected to be completed in 2014.
Currently, Nogales employs around 700 people.
