Automotive parts maker Commercial Vehicle Group (CVG) is set to close its production and warehouse plant in Tigard, Oregon by the end of December 2014.
Currently, the company produces interior trim components such as instrument panels and storage cabinets for large commercial vehicles at this plant.
The company will distribute majority of the production at this plant to other CVG plants in North America.
CVG expects to take restructuring charges of nearly $3.2m to $3.5m between March and December of 2014. This will generate expected annualized savings of around $1.5m to $2.5m.
CVG global truck & bus president Patrick Miller said that strategic decisions that impact personnel are always difficult and are not taken lightly, but this is a necessary step in response to changing customer needs and industry dynamics.
"Many of our customers, serviced by our Tigard facility, have transitioned their businesses to other geographic regions," Miller added.
"In order to remain competitive, CVG must continually re-evaluate market requirements and realign our capacity and manufacturing footprint."
