Bel announces latest 'cost reduction initiative'
July 31, 2008 -- Bel Fuse Inc. announced that it will cease manufacturing operations at its Bel Power Inc. facility in Westborough, Massachusetts by January 2009.
July 31, 2008 -- As the latest step in its continuing scheme to reduce costs and enhance its competitive position, Bel Fuse Inc. announced that it will cease manufacturing operations at its Bel Power Inc. facility in Westborough, Massachusetts by January 2009.
"Bel's Westborough facility was designed to produce high mix, low volume power products. While we will maintain design and customer support functions at this facility going forward, declining orders for small-run quantities led us to the decision to curtail production in Westborough," comments Daniel Bernstein, Bel's president and CEO.
Bel expects to incur severance and other costs related to the layoff of approximately 50 associates over the next few months. Impairment charges, which are required to be recorded as of September 30, 2008 in association with the closing of this facility, have yet to be finalized.
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