Heating and cooling systems specialist Modine Manufacturing Company is offering a voluntary early retirement programme at its Asan City, South Korea plant and has hinted that more cuts may follow elsewhere.
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The facility employs 272 salaried workers and approximately 13% of those workers have accepted the early retirement package. This initiative will result in the company taking a charge of approximately $US2.5m in its fiscal fourth quarter which ended 31 March.
Group vice-president James Rulseh, responsible for Modine’s Asian operations, said in a statement: “Our cost position in South Korea has put us at a competitive disadvantage. For this reason, we’ve taken steps to offer appropriate incentives to employees to remain competitive. ”
President and chief executive officer David Rayburn added: “This action in Korea is the first in a larger programme intended to support our top-line growth by repositioning the company into a more nimble competitor.
The specific elements of the programme, which we are currently analyzing, may include actions that could change our manufacturing footprint, and other steps intended to reduce corporate SG&A and other overhead expenses.
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By GlobalData“We will give an overview of the programme when we release our full year fiscal 2006 earnings in early May.”
