CHICAGO -- Auto parts supplier Tower Automotive Inc. said on Tuesday it will cut 250 jobs as it relocates frame-assembly production for Ford Motor Co.'s Ranger truck to Bellevue, Ohio from Milwaukee.
The cuts, equal to 2 percent of the company's work force, will result in pretax charges of $40 million to $50 million, or 47 cents to 59 cents, in the next 12 months, Tower said in a release.
It also said the relocation, expected to be completed by June 2004, will save about $10 million in cash annually.
Tower Automotive, based in Grand Rapids, Mich., said the estimated charges will include about $16 million of cash restructuring costs, $13 million for pension curtailment costs and $11 million to $21 million of non-cash asset write-offs.
The company said it is still evaluating whether any additional non-cash asset-impairment charges will be required for the rest of the Milwaukee plant.
Tower, which has 12,000 workers worldwide, said after the cuts it will employ about 560 people in Milwaukee. The cuts will affect hourly and salaried employees.