ESI consolidates facilities to streamline operations

The restructuring will result in the closure of the assembly plant and development center located in Chelmsford, Massachusetts, and overall staff reductions of approximately 45 employees. Products currently developed and manufactured in the Chelmsford plant will be transferred to other corporate facilities. “This action will enable us to further focus our efforts on growing our business while consolidating manufacturing facilities and lowering our fixed cost base,” stated Edward C. Grady, president and CEO of ESI. “I would like to express my sincere appreciation to the affected employees for their valuable contributions to ESI. While these moves are difficult, they are a necessary step in our revitalization plan, to position us for future growth and profitability.” The financial impact is expected to be an annualized pre-tax cost savings of approximately USD 4.5 million once fully implemented during the fiscal third quarter ending December 2015. The company expects pre-tax charges of approximately USD 5.5 million in severance and facility-related costs, of which USD 2.0 million is expected to be recorded in the fiscal fourth quarter ending March 2015.