UFP Technologies Plans To Cease Operations At Costa Mesa, California Plant

(RTTNews) - UFP Technologies, Inc. (UFPT) announced its plan to cease operations at its Costa Mesa, California plant and consolidate operations into its Rancho Dominguez, California facility and its other facilities. The company expects annual cost savings of approximately $550,000 as a result of the plant consolidation.

The company noted that this decision was in response to the December 31, 2014 expiration of the lease on the Costa Mesa facility as well as the close proximity of the two properties. The company expects the activities related to this consolidation to be completed on or before December 31, 2014.

The Georgetown, Massachusetts-based company said that most of the 35 employees at Costa Mesa plant have been offered employment at the Rancho Dominguez facility. The company added that severance will also be available for those employees who will not be offered employment and will remain with the company through the transition.

The Company expects to incur approximately $535,000 in one-time expenses in connection with this consolidation, including the $50,000 of expenses relating to employee severance payments, $465,000 in moving expenses and expenses associated with vacating the Costa Mesa property and approximately $20,000 in expenses in moving equipment within the Rancho Dominguez location.

UFPT closed Friday's regular trading session at $24.48.