Twinlab Moving Manufacturing to Utah 29158Twinlab Moving Manufacturing to Utah
August 26, 2002
Twinlab Moving Manufacturing to Utah
HAUPPAGUE, N.Y.--Twinlab Corp. announced plans to restructureits operations in hopes of improving the company's financial performance andoperating results. The company will consolidate its manufacturing anddistribution facilities into its Nature's Herbs FDA-registered facility inAmerican Fork, Utah. Twinlab's corporate offices and some operations related topurchasing and R&D will remain in New York.
"We believe that the consolidation of our manufacturing and distributionfacilities will allow us to reduce our overall cost structure, enhanceoperational efficiencies and customer service, and better position the companyfor future opportunities," said Ross Blechman, chairman, president andchief executive officer of Twinlab (www.twinlab.com).
The company expects to incur restructuring and related charges of up to $20million ($10 million of which will be non-cash), which will affect the third andfourth quarter results in fiscal 2002. It added the move should result in annualcost reductions in excess of $6 million. Twinlab's stock has been on a steadydecline for the last year; it closed at $0.44 per share in late July, up 33percent from a low of $0.33.
Twinlab also announced that it selected Acsis Inc.'s DataPass program forintegration into its SAP R/3 ERP system. The move will allow warehouse employeesto input supply chain data in retail time to immediately track all inventory tostock, bin, lot and location in one system.
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