October 12, 2006
The Timken Co. today announced its intention to exit its European seamless steel tube manufacturing operations located in Desford, England, as part of its strategy to manage its business portfolio to improve performance. The company will begin consultations with representatives of the 400 associates located at the Desford facility to explore alternative solutions to closure.
"The proposed action is part of the company's strategy to focus on lines of business that produce differentiated products while driving profitable growth," said Salvatore J. Miraglia, Jr., president of Timken's Steel Group. "Exiting this business would further advance the focus of the Steel Group on differentiated products that deliver value to both customers and shareholders."
The Desford facility generated sales of approximately $85 million to $95 million in recent years, but has not been profitable. It manufactures seamless steel tube for machining and mechanical applications, primarily serving the bearing industry in Europe.
In conjunction with the proposed exit of the business, Timken would intend to sell some portion of the plant's assets and secure a reliable alternative source of steel tube for its European bearing operations.