Thin-film coatings specialist Southwall Technologies Inc. is completing the transfer of its U.S. production to a German subsidiary and the closing of its Palo Alto, Calif., plant.
The work is going to Southwall Europe GmbH in GrossrÃ¶hrsdorf, Germany, near Dresden. About 40 Palo Alto jobs will be lost.
While the company estimates severance costs at $300,000, the move is designed to save about $4 million a year. The transfer should be complete by midyear.
Southwall said in a news release it will scrap or sell its Palo Alto machines.
Southwall makes and markets coated polyester film for automotive and architectural glass, electronic displays and windows. The products are designed to absorb, reflect or transmit light.
Following the U.S. reduction, Southwall intends to employ about 44 in nonmanufacturing jobs at a relocated California site, 90 in Germany and seven in sales offices.
Southwall reported 2005 profit of $3.3 million on sales of $54.6 million. Southwall stock trades on the Over-the-Counter Bulletin Board. As of Feb. 27, New York-based investment bank Needham & Co. Inc. and its affiliates owned about 42.4 percent of Southwall's outstanding capital stock.
Southwall manufactured thin PET film in a leased Tempe, Ariz., facility from 1997 until late 2003.
Southwall Europe began operations in a 60,000-square-foot facility in May 2000 and shortened the supply line to the firm's European customers.