Chart Industries, Inc. (Nasdaq:GTLS), a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, today announced that CAIRE, which operates under Chart's BioMedical segment, plans to close its liquid oxygen therapy manufacturing operations in Plainfield, Indiana and relocate the manufacturing and customer service operations to a facility close to existing operations in Canton, Georgia where it manufactures the same product line. The Plainfield manufacturing and customer service operations were acquired in November as part of the acquisition of Covidien's (NYSE:COV) liquid oxygen therapy business.
"Over the past five months since the acquisition of the liquid oxygen therapy business from Covidien we have been analyzing the most effective way to rationalize this business, as we previously disclosed. We have concluded that the consolidation of the manufacturing and customer service operations into our Canton, Georgia campus is the most cost effective solution to meet our customers' needs," stated Steve Shaw, President of Chart's BioMedical Group.
"It is anticipated that it will take approximately 12 months to relocate the operations to Canton," stated Mr. Shaw. Approximately 130 employees will be affected, and the Company will provide assistance to help employees seeking new jobs.
The anticipated restructuring costs associated with the closure of the Plainfield manufacturing operations and relocation of the operations to Canton were included in Chart's 2010 earnings estimates that were announced when Chart reported 2009 year end results on February 24, 2010. As a result, the impact of this closure is included in the Company's previously disclosed 2010 forecasted earnings guidance of $0.40 to $0.60 per fully diluted share, which includes expected charges of approximately $0.20 per share for restructuring, acquisition related and write-off of deferred financing costs.
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