Thompson/Center Arms to close Rochester plant
Thursday, December 9, 2010
ROCHESTER � Springfield, Mass-based Smith & Wesson Holding Corp is relocating its Thompson/Center Arms operations from Rochester, N.H., to its Springfield, Mass. facility, according to the City biz Real Estate website.
The site posted the news late Wednesday night.
Foster's Daily Democrat has learned the company bused its employees to a meeting at the Governor's Inn Restaurant around 4 p.m. Wednesday. At the meeting company representatives were reported to have said the Thompson/Center Arms facility would be closed over a period of about nine months.
The closure will effect approximately 250 employees, some who may be offered the opportunity to move the company's Springfield operation.
Foster's also learned over the next couple of weeks there will be meetings with employees to discuss severance issues and the possible relocation of some local workers to Springfield. Employees were also told the company was continuing to look for a buyer for the foundry at the Rochester facility.
According to its most recent annual report, the company owns three manufacturing facilities in its firearm division. Its principal facility is the 530,323-square-foot Springfield plant. It also owns a 38,115-square-foot plant in Houlton, Maine, and the 160,000-square-foot plant in Rochester.
The bulk of the $9 million of estimated cash outlays associated with the relocation will occur in the second half of 2011, and those outlays are expected to be recovered in approximately 24 months. The relocation is scheduled to commence in January 2011 and conclude by November 2011.
As a result of the relocation of its Thompson/Center Arms operations, Smith & Wesson expects to record future expense of approximately $6 million, consisting of approximately $3 million for personnel-related exit costs and approximately $3 million of other facility-related shutdown costs, including costs for moving and facility preparation.
The Springfield facility is primarily used to manufacture handguns and rifles; the Houlton facility is primarily used to manufacture handcuffs, restraints, .22-caliber pistols, metal center-fire pistols, and the Walther PPK and PPK/S pistols; and the Rochester facility is used primarily to produce hunting rifles, black powder firearms, interchangeable firearm systems, and long gun barrels.
The company also owns a 56,869-square-foot facility in Springfield that it uses for the Smith & Wesson Academy, a state-accredited firearm training institution, a public shooting facility, and a retail store; and a 6,000-square-foot retail facility in Rochester.
The company leases office and manufacturing space at four facilities in its perimeter security division. The facilities are all located within a quarter mile of each other in Franklin, Tenn. The total space leased is 61,509 square feet.
The company also leases 2,800 square feet of office space in Scottsdale, Ariz., which houses its investor relations department as well as offices for its board of directors, and 577 square feet of office space in Washington, D.C., which houses certain executive staff. Both of these leases expire on Dec. 31, 2010.
Smith & Wesson acquired Rochester, NH-based Thompson/Center Arms, Inc., a privately held, New Hampshire-based designer, manufacturer and marketer of hunting firearms, for $102 million in cash in 2006.
Low growth industry and the market is saturated main cause of the problem . Of course anytime one company is bought by another the only people to prosper are the CEO's,Bankers,Lawyers,Brokers and financial analysts. The people that did the actual grunt work get screwed, most times royally while the CEO is courted by even more companies. When we can find out how to not repeat this sell fullfilling stupidity company after company we will regain our Industrial base.
