ABC Technologies to shutter Poland manufacturing plant
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The Toronto-based auto parts supplier is closing its plant in Koninko, Poland next year because of increased costs for utilities, freight, material, and labour.
Toronto-based auto parts supplier ABC Technologies plans to close a plant in Poland next year because of what it calls “dramatic” increased costs for utilities, freight, material, and labour.
In its Nov. 11 quarterly report, officials with ABC described the plant in the village of Koninko, Poland as a “small operation”.
“[We are] proactively working with customers to relocate their production which is expected to take until Q4 Fiscal 2023 to complete,” the report said. “The plant is expected to be shut down when that activity is completed.”
The company recorded a write down of the plant’s tooling inventories of $2 million during the three months ended Sept. 30, 2022 and an impairment charge relating to property, plant and equipment of $8.2 million during the year-end June 30, 2022, the report said.
ABC said it doesn’t expect additional, significant impairment charges, “although charges for severance and other estimated closure costs will be recorded” in the second quarter of 2023.
“Supply chain disruptions and economic conditions, which also include the conflict between Russia and Ukraine, have introduced higher levels of inflation for costs including, but not limited to, labour, freight, utilities, resin, glass, rubber, paint and steel,” ABC said. “We believe these conditions are temporary for many of our costs and will abate over time when supply conditions are successfully resolved.”