June 16, 2005 Highland Heights, KY -- General Cable today announced its decision to close its fiber-optic military and premise cable manufacturing plant in Dayville, Connecticut, and to relocate production from this plant to its recently acquired facility in Franklin, Massachusetts, which currently produces copper as well as some fiber-optic communications products. The Dayville plant employs approximately 30 associates.
The company also announced today that it is closing one of its three North American plants that manufacture copper telephone exchange cables. The plant, located in Bonham, Texas has approximately 170 active associates and utilizes more than 360,000 square feet in the production of copper telephone exchange cable.
"Our Bonham facility has been operating at below 50% of its capacity. In light of our belief that there will not be a significant rebound in demand for copper telephone exchange cables, we have made the decision to streamline our manufacturing operations and close the plant," remarks Gregory B. Kenny, CEO of General Cable. "Our Dayville, Connecticut facility, which primarily manufactures fiber-optic military and premise cables, has also been operating at less then 50% of its capacity. We will optimize our fiber-optic cable manufacturing operations by moving this productive capacity to a larger and more broad-based General Cable facility."
According to the company, the total cost of the closures should approximate $30 million, of which about $13 million will be cash costs. The company says that approximately $4 million of these charges, none of which will be cash costs, will be recognized in the second quarter of 2005.