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Symmetry Medical says cost for closure of Cheltenham facility $2M

In a filing, Symmetry Medical said that on February 21 the company announced that the consultation proceedings begun with its employees on January 30 had concluded with an agreement that the facility in Cheltenham, United Kingdom should cease production within calendar 2014. The Cheltenham Plant is engaged primarily in the manufacture of medical instruments and employs approximately 40 people. Fiscal 2013 revenue at the Cheltenham plant was approximately $4M, and the plant generated an operating loss for the company. The cost of closure is estimated to be approximately $2M pre-tax, and the ongoing savings are estimated to be approximately $1M per year pre-tax on an ongoing basis. Closure will be by the end of 2014 and there is no benefit expected in this fiscal year. The company remains in consultation with customers and employees regarding specific timing and process to ensure that customer needs are met and employees are properly provided with opportunities to remain through the closing process.