DALLAS - Elcor Corp.'s Cybershield unit will close its manufacturing facility in Canton, Ga., and consolidate all activities of the plant into the Lufkin, Texas, facility. <br>
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The company said Tuesday that it will record $5 million to $6 million in nonrecurring pretax expenses in the third quarter related to the action, including about $1.8 million in cash costs. The charge will be mitigated by $5.9 million in nonrecurring income from the favorable cash settlement of a dispute with a vendor. <br>
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Elcor said it expects the plant closure to reduce Cybershield's annual fixed costs by about $2.4 million. After consolidation, the company expects the Lufkin facility to be capable of annual sales of $75 million to $100 million and to support near-term growth initiatives. <br>
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Elcor hopes to have the capacity in place at the Lufkin facility to produce metal patterning in commercial quantities as early as June. <br>
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The company also said that Cybershield's New Product Development Group will move into an expanded facility in Raleigh, N.C., and that it is exploring a number of low-risk alternatives to enter the Asian market. <br>
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The company makes roofing and building products, reconditions locomotive engine components, provides technology for gas processing and metalizes plastic components for use in consumer electronic devices. <br>
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New York Stock Exchange-listed Elcor shares traded Tuesday morning at $21.95, down 25 cents, or 1.1 percent. In the past 12 months, the Dallas holding company earned $12.54 million on revenue of $465.67 million. <br>
