Bonnell Closing Aluminum Extrusion Plant in Kentland
February 22, 2012

Offcials at Tredegar Corp. of Richmond, Va., announced that the company's Bonnell Aluminum subsidiary will close its plant in Kentland, Ind., according to a company news release. The plant, which employs 146 people, is scheduled to close by September 30, 2012.

Tredegar officials estimate that the company will recognize charges related to the shutdown of approximately $8 million, including accelerated depreciation on fixed assets of approximately $4 million, severance-related charges of approximately $1 million and other shutdown-related charges of approximately $3 million. Other shutdown-related charges primarily comprise equipment transfers and plant shutdown charges. Most of these charges will be recognized over the next 18 months, officials estimate.

The Kentland facility had sales of approximately $38 million in 2010 and has been operating at a loss for the past several years.

"This was a difficult decision to make, and we regret the impact this decision will have on our employees in Kentland," says Duncan Crowdis, president of Bonnell Aluminum, in the release. "While the employees have made an exceptional effort to help weather the current construction recession, prospects for a significant recovery in Kentland's core market, residential building and construction, now appear to be well into the future. Eligible employees will be offered severance and outplacement services."

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