Aldila to Close Tijuana Plant

Aldila, Inc. will close its Tijuana, Mexico facility where about 100 people are employed. According to a filing with the SEC, the action was announced to the company’s Tijuana employees on August 20 after a decision August 19 by the company’s Board of Directors.

 

Aldila said the closure was a “business necessity” and added that it was driven by market conditions and because the company currently has excess capacity. The company said it is presently unable to make a determination of an estimate of the amount or range of amounts of costs expected to be incurred in connection with the actions, nor the amount or range of amounts that will result in future cash expenditures.

ALDA said it will disclose estimates of the amount, type and timing of such costs and cash expenditures promptly after they are determined.

Aldila to Close Tijuana Plant

Aldila, Inc. announced plans to close its Tijuana, Mexico facility. According to a filing with the Securities & Exchange Commission, the  action was announced to the company’s Tijuana employees on August 20, 2009, after a decision on August 19, 2009 by the company’s Board of Directors.

The company said in the filing that it currently employs approximately 100 people at its Tijuana, Mexico facility.

Aldila said, “This planned closure is a business necessity, driven by existing market conditions and because the company currently has excess capacity.  The company’s facilities in Asia have the tooling and capabilities to manufacture what was being manufactured in Mexico. The planned action in no way reflects on the performance of the company’s employees at the Mexico facility. The planned action is expected to be subject to the severance requirements of Mexican employment law.  The Mexico facility is occupied under a lease which is scheduled to terminate in January 2010.”

The company said it is presently unable in good faith to make a determination of an estimate of the amount or range of amounts of costs expected to be incurred in connection with these actions, nor the amount or range of amounts that will result in future cash expenditures.  The company said it will disclose estimates of the amount, type and timing of such costs and cash expenditures promptly after they are determined.

 

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