HNI Plans To Close Florence, Alabama Office Furniture Manufacturing Facility

(RTTNews) - HNI Corp. (HNI) disclosed in a regulatory filing that it has approved the closure of its Florence, Alabama office furniture manufacturing facility as part of its plan to reduce structural costs.

The company expects to consolidate the Florence production into existing office furniture manufacturing facilities and expects the closure and consolidation to be substantially completed by the first quarter of 2015.

The Muscatine, Iowa-based company estimates the realignment to save $5.8 million annually beginning in 2015 and anticipates charges related to the closure and consolidation to impact pre-tax earnings an estimated $11.2 million.

HNI estimates cash restructuring and other costs associated with these actions to be $6.8 million, with $1.7 million related to workforce reductions and $5.1 million related to costs association with manufacturing consolidation and production moves.

HNI closed Friday's regular session at $36.30.