US cash machine manufacturer Diebold is to close a production plant in Virginia with the loss of 110 jobs.
Production at the Danville plant, which assembles modules for automated teller machine (ATM) components, and produces physical security and banking facility equipment, will be phased out by the end of the third quarter in 2005.
George Mayes, Jr., Diebold vice president, global manufacturing, says the new Opteva product line, which was introduced in the Spring of 2003, is easier to produce and requires less manufacturing capacity.
He says: "For Diebold to remain competitive in a cost-driven global marketplace, it is critical that we consolidate our production activities wherever possible to make better use of our manufacturing infrastructure."
Activities currently undertaken at the plant will be absorbed by other Diebold facilities or contracted out to external suppliers, he says.
The action will result in a restructuring charge of approximately $.02 per share in the second quarter and $.01 per share in the third quarter. Full year restructuring charges are now expected to be approximately $.12 per share, which compares to the previously disclosed full-year restructuring charges of $.09 to $.12 per share.