February 14, 2014
General Cable (NYSE: BGC) announced its intention to permanently discontinue product manufacturing and distribution at its LaMalbaie facility located in Quebec, Canada. The LaMalbaie plant manufactures bare aluminum transmission and distribution conductors for the company's electric utility customers and currently employs 53 associates. The hourly associates in LaMalbaie are represented by the USWA (United Steel Workers of America).
In recent years, General Cable has conducted studies and evaluated a number of operational changes to improve service and lower overall costs at the LaMalbaie plant. The plant's remote location has resulted in high transportation costs and a more complex supply chain, which cannot be overcome despite the company's best efforts and continuous improvement programs.
Therefore, General Cable has concluded it is better for its North American Electric Utility business to close the LaMalbaie plant, which it expects to be complete by April 8, 2014. General Cable will continue to operate two electric utility plants in Quebec, Canada, and four electric utility plants in the United States.
General Cable indicated that while making a decision to close a manufacturing plant is always very difficult, in this case it is necessary as the company continues to strive to be the low-cost producer of high-quality electric utility cables in North America. General Cable will provide assistance to its impacted LaMalbaie associates during the transition period.
In addition to the LaMalbaie plant closure, General Cable is also permanently closing its Roseburg, Oregon, plant, which has been idle for over two years and was purchased as part of the company's Alcan Cable acquisition in the fall of 2012.
In connection with these actions, General Cable is beginning its previously planned transition from a seven-day to a five-day production schedule at all its electric utility manufacturing locations to improve efficiency of these facilities. This change in production will have no impact on the company's ability to service its customers' current needs, and these plants have sufficient capacity to serve the growth opportunities of the company's customers well into the future.
General Cable (NYSE: BGC), a Fortune 500 Company headquartered in Highland Heights, Kentucky U.S.A., is a global leader in the development, design, manufacture, marketing and distribution of aluminum, copper and fiber optic wire and cable products for the energy, construction, industrial, specialty and communications markets. It operates 57 manufacturing facilities in 26 countries and employs more than 14,000 associates. Visit our Web site at www.GeneralCable.com.
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