Wolverine Tube Closes Two Manufacturing Facilities

---

Researched by Industrial Info Resources (Sugar Land, Texas). Recognized worldwide as the technological leader in non-ferrous products, Wolverine Tube, Incorporated (NYSE:WLV ) (Huntsville, Alabama), announced that it will permanently close two of its manufacturing facilities located in Jackson, Tennessee and Montreal, Quebec. In addition, the company will consolidate its United States wholesale distribution facility in Tanner, Alabama to the Decatur, Alabama plant location. Even though the rise in copper cost was a pressure factor, it was not the reason for the closures. The decision was in response to the unsatisfactory financial performance and business outlook for the facilities.

The Jackson plant made industrial tube used in residential and light commercial air conditioners. Wolverine will stop manufacturing the product and will service its customers through the company’s global buy/resell programs. Wolverine has reached an agreement with a China-based manufacturer who will produce it and then make it available to Wolverine to sell. The closing of the Jackson operations and consolidation of the wholesale distribution facility, which is expected to be completed by the end of November, will affect about 50 permanent and 20 temporary employees in Jackson.

Wholesale and industrial copper tube manufactured in the Montreal operations will be transferred to the company’s sister facilities, including its operations in London, Ontario and Decatur, Alabama. With the closure of the Montreal plant, Wolverine will discontinue its line of underperforming solid rod and bar products. The shutdown will start at the beginning of November, with completion of the closure occurring during the first quarter of 2007. The closing of the Montreal plant will affect 350 permanent and 40 temporary employees.

Wolverine will be pursuing a sale of the plants’ assets that are not redeployed for use at its other locations, including real estate, inventory, and equipment. The Jackson facility is a 240,000 square feet building, sitting on 51 acres of land, while the 424,000 square feet Montreal facility is sitting on 25 acres. In connection with the closures, the company currently estimates that it will incur a total of approximately $28.0 million in restructuring and impairment charges consisting of $9.8 million for employee termination benefits, $11.5 million for environmental remediation, $1.2 million for termination of contracts, $5 million for the costs to carry the facilities from closure to sale, and $0.5 million for other administrative costs. Wolverine expects to save approximately $6 million annually from the closing and consolidation of these plants.

View Plant Profile – 1039936 1015685

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.