Standard Motor Products to close plant in Nogales, shift production to Reynosa
Automotive replacement parts manufacturer and distributor Standard Motor Products announced that it will shift production from a recently acquired Nogales, Sonora, wire set assembly operation to its existing wire assembly business in Reynosa, Tamaulipas by the end of 2017.
Following this measure, the company will close the Nogales plant. It expects one-time expenses of US$ 3 million related to the closure, according to a press release (PDF).
The company will also close its Grapevine, Texas, facility and relocate the production lines to Greenville, South Carolina, and Reynosa, Tamaulipas. Further, it will relocate some production lines from Greenville, to Bialystok, Poland. The firm plans to complete these actions by the end of 2017, which should result in significant synergies and cost savings, according to the statement.
Along with production shifts, Standard Motor reported US$ 300.8 million in consolidated net sales for the third quarter of 2016, compared to consolidated net sales of $270 million during the comparable quarter in 2015.
Earnings from continuing operations for the third quarter of 2016 were US$ 21.1 million or 91 cents per diluted share, compared to $19.2 million or 83 cents per diluted share in the third quarter of 2015.
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