Sifco Industries to Close Turbine Services Business

Sifco Industries Inc. of Cleveland, Ohio, a supplier to the aerospace and energy industries, is closing its turbine components services and repair business.

 

The company wants to focus on its forged components business, and the repair business did not fit in with the core aerospace and energy forgings business, according to a press release. A Minneapolis plant will close as a result of the decision, and about 50 employees will be affected.

 

In its most recent annual report, Sifco indicated that the repairs business had fallen below the break-even point in terms of volume in 2012. In a filing with the U.S. Securities and Exchange Commission, the company reports it expects to spend between $1.87 million and $2.01 million on closing costs. That estimate includes costs related to employee separation, overhead, pension curtailment, and administrative and legal expenses.

 

According to a local report, employee separation costs are estimated to be between $988,000 and $1.11 million. 

 

Sifco had about 565 employees at the end of its most recent fiscal year.

 

The closing process service and repair business is expected to begin immediately and will take about 90 days to complete.