Jeld-Wen to Close Manufacturing Facility in Atlanta

January 27th, 2023 by Drew Vass, Executive Editor

Jeld-Wen Holdings Inc. plans to close a manufacturing facility in Atlanta. In a filing made Thursday with the U.S. Securities and Exchange Commission (SEC), the company reports that the planned closure is part of a restructuring plan and a continuing effort to “optimize the company’s footprint and drive operational efficiencies.” According to the filing, the company expects to realize annual estimated cost savings of approximately $11 million.

A spokesperson for the company tells [DWM] employees in the Atlanta facility were notified Thursday that the company will not renew its lease agreement, instead moving production to existing Jeld-Wen facilities in Florida, Ohio and Texas.

“While these decisions are difficult, we are taking steps to simplify and strengthen the company, which includes optimizing our operations network to better compete in the market we serve,” says a company representative who requested not to be identified. “We value the contributions of our employees and have provided those affected with a competitive separation package and outplacement services to help provide a smooth transition.”

Affected employees can also apply for any open roles across the company, the representative says.

According to the SEC filing, Jeld-Wen expects to incur pre-tax restructuring expenses, other closure costs and capital spending, including such things as building restoration, equipment relocation and employee-related costs. Those expenses are estimated to reach approximately $19 million and are expected to be incurred by the end of the third quarter of 2023. Approximately $15 million will be cash items, the company reports, including approximately $3 million of capital expenditures.

The plan is expected to be “substantially completed” by the end of the third quarter of this year.

“While decisions that impact people are never easy, we make them only after careful consideration and with the understanding that our actions today are necessary to position Jeld-Wen for long-term success,” the company representative says.

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