ESAB restructures North American operations
- April 16, 2015
ESAB Welding & Cutting Products is restructuring its operations and will integrate ESAB and Victor regional operations and facilities. The restructuring will be deployed in phases throughout this year and 2016.
"This consolidation will enable us to significantly improve the customer experience while leveraging our resources through the application of best practices," says Clay Kiefaber, ESAB president and CEO. "While we regret the loss of associate positions, consolidating our operations will help improve our overall customer responsiveness, and deliver even better performance and future growth."
The following actions are planned:
- ESAB's Florence, South Carolina, manufacturing operations will be consolidated into the company's Denton, Texas, and Hermosillo, Mexico, facilities. The Denton and Hermosillo facilities offer state-of-the-art manufacturing with precision CNC machining, automation, and made-to-order assembly, delivering an exceptional level of product quality. The consolidation of these facilities is designed to remove complexity from the business while providing enhanced customer service.
- As part of the reorganization, ESAB's Denton, TX, facility will undergo a significant renovation and expansion that will support future growth and accommodate a number of ESAB's North American functions. Upon completion, ESAB will consolidate the distribution operations from the Florence facility and from its Roanoke, Texas distribution facility into the Denton site.
- The company's Florence, SC, finance, accounting, customer service, inside sales, and training functions will also be consolidated into Denton, TX. With this action, ESAB will leverage best practices to streamline work processes and improve overall customer satisfaction.
- Plasma cutting design engineering and R&D functions will be transitioned to ESAB's West Lebanon, New Hampshire facility. The West Lebanon facility is a state-of-the-art R&D center for ESAB's plasma cutting technology business. This consolidation of critical resources will enable accelerated innovation and speed new product solutions to market.
- ESAB will maintain a limited commercial presence in Florence, SC (sales, marketing, marketing communications, and capital goods sales) as well as personnel from order engineering (SIP), IT, and human resources. These functions will eventually be relocated to a new facility in Florence in early 2016.
- The Florence facility is scheduled to be closed by March 31, 2016. While transfer opportunities will be made available to as many employees as possible, the company estimates that 300 associates will be impacted. Severance benefits, including health care and outplacement assistance will be provided to these associates. All associates at ESAB's Roanoke, TX facility, located approximately 16 miles from the Denton plant, will transfer to the Denton facility. The Roanoke facility will close by February 29, 2016. No other ESAB locations will be affected.
The restructuring plan builds upon the successful integration of the Victor and ESAB businesses. ESAB's 2014 acquisition of Victor brought together two leading organizations with world-class products, technologies and R&D. The combination of ESAB and Victor offers a comprehensive product portfolio that brings a broad array of solutions to the global welding and cutting industry. Today, the company employs more than 8,700 associates working in facilities across four continents.