(RTTNews.com) – Invacare Corp. ( IVC ) announced the closure of its Suzhou, China, manufacturing facility, effective June 26, 2017. The company has transferred production from the Suzhou facility to Invacare operations located closer to its regional customers.
The closure is expected to generate an incremental $4.0 million in annualized pre-tax savings in the North America/Home Medical Equipment (HME) segment. Due to this realignment, the company expects to incur restructuring charges of approximately $3.0 million on a pre-tax basis in the North America/HME segment that will be accrued in the second quarter of 2017, including severance costs for approximately 150 associates.
Dynamic Controls, Invacare’s electronics subsidiary and part of the Asia/Pacific segment, will continue to have a manufacturing site in Suzhou, China.