NN, Inc. Announces the Closure of Its Tempe Arizona Facility (NNBR)

NN, Inc. NNBR today announced that it has sold a portion of the manufacturing assets of its Tempe Arizona facility to Triumph Manufacturing LLC, a newly formed Company that is not affiliated with NN. On January 6, 2010, NN announced that it would be closing its Tempe Arizona facility, consolidating most of the production into its two facilities in Wellington, Ohio and ceasing production of certain products that were not transferred to its Ohio facilities. However, based on the sale of the above mentioned assets, Triumph Manufacturing will be able to take over the existing facility, employ a number of the former management and production employees and continue to supply existing customers with these products. Additionally, on January 6, 2010 the Company announced that it expected to incur cash charges of approximately $2.5 million in severance, equipment relocation and other closing costs during the first three quarters of 2010. As of today, NN has completed the majority of the planned transfer of the assets to its Wellington, Ohio facilities and has incurred cash charges to date of approximately $1.7 million. NN now expects total cash costs in the transaction to total approximately $2.0 million.