Imation To Close Calif.
By Lisa Johnston -- TWICE, 7/22/2008 8:22:00 AM
Oakdale, Minn. — Imation announced today it would be closing its Camarillo, Calif., plant by the end of the year.
The company said it would focus all tape coating in its Weatherford, Okla., plant.
This follows the announcement in May 2007 of the consolidation and outsourcing of its tape converting operations resulting in the exit of its Wahpeton, N.D. plant by the end of 2008.
Imation said the closing of the Camarillo plan would result in approximately 140 positions being eliminated. It anticipates it will incur up to $20 million in restructuring and related charges associated with the Camarillo closure, the majority of which will occur in the second half of 2008.
Approximately half of the charges, said Imation, are anticipated to be cash payments associated with severance benefits and costs of exiting the site; it’s expected the closing will result in $15 million to $20 million in annualized cost eliminations.
Commenting on today's announcement, Imation's president/CEO Frank Russomanno said in a statement: "Imation remains committed to maintaining our leadership position in the removable data storage industry serving commercial customers. As we said in the past, this management team will take all steps necessary to maintain our competitive advantage.
Steve Moss, Imation’s chief marketing officer, recently sat down with TWICE to discuss some of the changes the company had undergone in the previous 12 months. Earlier this month, the company announced it was acquiring XtremeMac.
