By the end of March, Lamson & Sessions Co. will close its high density polyethylene conduit facility in El Dorado, Ark., as it integrates two businesses acquired late last year.
Lamson of Beachwood, Ohio, acquired Erie, Pa.-based Pyramid Industries Inc. in a $52 million cash deal in August; in December, it paid $65 million for fiber-optic conduit maker Ameriduct Worldwide Inc. of Fort Myers, Fla.
"By closing that [plant], we still meet the needs of the geographic area," said Executive Vice President and Chief Financial Officer James Abel.
"Our intent is not to get rid of the lines but to put the lines where they will better meet the market requirements," Abel said in a Jan. 30 telephone interview.
Abel first announced the move earlier that day during the firm's teleconference on full-year and fourth-quarter 2000 earnings results.
The closing will affect 30 employees.
There are no plans to close any of Ameriduct's three facilities, which are newer, Abel said. Ameriduct has plants in Georgia and Missouri, with a distribution facility in Florida.
Lamson has not decided where to move the El Dorado plant's five lines, Abel said. In total, Lamson operates 28 HDPE extrusion lines.
The company reported $348.7 million in 2000 sales. Sales in the fourth quarter were $88.8 million, up 19.6 percent from the same period a year earlier. Abel pointed out, however, that the quarter's sales would have been relatively flat without the acquisitions.
Lamson officials expect a soft first quarter in the telecommunications infrastructure market, but they still are anticipating this segment to grow above normal levels for 2001, he said.
As far as future acquisitions, expect nothing significant this year, Abel said. If the company takes any action, it will be to look at broadening its product lines.