In a move to cut costs, GSI Group Inc. (Bedford, Mass.) has restructured its Rugby, U.K.-based laser business.
All volume manufacturing of legacy laser products will be moved from the U.K. to other GSI and former Excel Technology laser manufacturing sites.
The Rugby, U.K. unit ''will focus on advanced laser development and on production of GSI's newest fiber laser products. The team will relocate from its existing building to a more appropriate facility in the Rugby area,'' according to GSI. GSI Group supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems.
The Rugby restructuring is expected to cost approximately $6.3 million. This includes a non-cash land and building impairment charge of approximately $3.6 million, employee termination costs of approximately $1.2 million, inventory write off of approximately $0.9 million and building maintenance and move related costs of approximately $0.6 million.
Total cash-related charges are expected to be approximately $1.8 million. The restructuring is projected to be completed by the end of 2009 and generate annual pre-tax savings in the range of $2.0 to $3.0 million.
For Q4 2008, the company expects to book a pre-tax restructuring charge of approximately $4.9 million.