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On November 11, 2020, Meritor, Inc. approved a restructuring plan to close three U.S. manufacturing plants in its Industrial business and one European administration office in its Aftermarket business and consolidate those operations into existing facilities, according to a Form 8-K release. The site closures include: Chicago, IL (acquired through AxleTech acquisition); Livermore, CA (acquired through Fabco acquisition); Livonia, MI (acquired through Fabco acquisition); Zurich, Switzerland.
The closures impact nearly 150 hourly and salaried workers. These restructuring plans “are intended to optimize the Company’s manufacturing footprint, reduce costs and increase efficiencies.” With this restructuring plan, the Company expects to incur around $19 million in restructuring costs in the Aftermarket and Industrial segment, consisting of impairment of long-lived assets of $9 million, severance related costs of $5 million and other associated cost of $5 million. Restructuring actions associated with this plan are expected to generate approximately $10 million in annual run rate saving and will be substantially complete by the end of 2021.
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