Samuel Manu-Tech to Close Steel Strapping Plant in Canada

Samuel Manu-Tech Inc. has recently completed a review of its Steel Strapping operations, which has resulted in the decision to close the Warden Avenue manufacturing facility, located in Scarborough, Ontario. The Warden Avenue production will be transferred to our new Heath, Ohio facility. Details with respect to this new facility will be announced in a subsequent press release.

While the Company regrets the closure of the Warden Ave facility, this action, is expected to result in higher productivity and improved profitability going forward. The competitiveness of this facility has been impacted by the decline in the Canadian steel strapping market, significantly increased logistical costs, as well as the appreciation of the Canadian dollar.

The Warden Avenue closure will result in estimated non-recurring costs of $ 9.5 million ($ 6.2 million net of tax) to cover facility closure, disposal of certain assets, severance and other related items. The Company expects to dispose of the Warden Avenue land and building following an orderly wind down of the plant operations. Such a sale would be expected to mitigate the closure costs over time.