Operations at Warren plant moved and location closed
WARREN — Less than one month after it announced it acquired the Engineered Wire Products plant on the city’s west end, North Carolina-based Insteel Industries announced it closed the facility.
Insteel in a news release stated the company moved the manufacturing from the West Market Street site to the company’s remaining welded wire reinforcement production facilities.
The consolidation is expected to result in 35 jobs lost. Operations were expected to cease by the end of November.
“Given the low capacity utilization levels at our Warren facility and the dim prospects for improvement, we believe this action is essential to reducing our operating costs and strengthening our competitive position,” H.O. Woltz III, president / CEO of Insteel, said in the release. “Closing a facility is never easy, and we are committed to ensuring a smooth transition for the employees affected by this change.”
The company expects to incur a restructuring charge of approximately $1.9 million related to the facility’s closure, the release states.
The Warren facility at 3121 W. Market St. was acquired as part of Insteel’s recent purchase of Engineered Wire Products, Inc., based in Upper Sandusky.
The factory was built in late 2009 / early 2010 by Warren native Mark Marvin and operated as Reinforcement Systems Inc. before it was sold to Dutch interests. It was sold again in 2014 for $3.25 million to Engineered Wire Products, according to the Trumbull County Auditor’s Office, which also shows Insteel acquired the facility for $7 million on Oct. 22.