Mount Airy, North Carolina-based Insteel Industries, Inc. announced Wednesday that it was closing its leased facility in Houston, Texas and moving the manufacturing to its Dayton, Texas plant. The production equipment at the Houston facility was acquired in connection with Insteel's recent purchase of certain of the assets of Ivy Steel & Wire, Inc on November 19.
The consolidation of the plants is expected to result in the elimination of 67 positions at the Houston facility and the addition of 19 positions at the Dayton plant, which will be offered to the Houston employees, for a net reduction of 48 positions.
It is anticipated that operations at the Houston facility will cease by the end of February 2011 and the equipment will be redeployed to other Insteel locations.
"Considering the ongoing weakness in our markets and reduced utilization levels at both Texas facilities, we believe these actions are essential to reducing our operating costs and strengthening our competitive position," said H.O. Woltz III, Insteel's president and CEO. "We do not take the decision to close a facility lightly and are committed to making the transition as smooth as possible for the employees who are impacted."