LSI Industries closing New Windsor manufacturing facility
Cincinnati-based LSI Industries Inc., a maker of LED lighting, is shutting its New Windsor manufacturing facility and laying off 136 employees. The layoffs will begin on Jan. 28 and be completed by June 30, according to a Worker Adjustment and Retraining Notification filed with the New York State Department of Labor.
The workers at the facility at 500 Hudson Valley Ave. made indoor lighting products. The company said in a statement that production would be transferred to LSI”™s facilities in Erlanger, Kentucky and Blue Ash, Ohio. The workers are represented by Local 363 of the International Brotherhood of Electrical Workers.
The closing is part of ongoing actions by LSI Industries to “align the company”™s supply chain to more cost effectively serve the changing requirements of the lighting market.”
The company reported net sales of $83.4 million in the fourth quarter of fiscal 2018, flat compared to the $83.4 million reported in the same period a year earlier. Reported net income was a loss of $2.6 million compared with net income of $696,000 in the fourth quarter of 2017.
The company was to hold a conference call on Tuesday for its first quarter of 2019 earnings.
The company said in a statement that the closing would allow it to “improve utilization of existing manufacturing capacity” and the changes would generate annual savings of about $4 million.
Company CFO James E. Galeese said, “We have taken numerous actions over the past few years to improve the efficiency and service capability of our supply chain and the New Windsor production transfer is an important next step in our continuous improvement process.”
He said, “the decision to close New Windsor and reduce our workforce was difficult given the skills and commitment of the employees at this site.”
The company stated that it would record estimated restructuring costs of $2.4 million over the next several quarters.
Founded in 1976, LSI Industries is a designer, manufacturer and marketer of lighting, graphics and technology products for both indoor and outdoor applications. The company”™s primary markets include gas stations, automotive dealers, convenience stores, quick-serve restaurants, grocery, banking, retail, renovation, parking and warehousing.
LSI has about 1,200 employees and operates eight facilities throughout the U.S.