KMG Chemicals To Shift Milan Manufacturing Operations To France And UK

(RTTNews) - KMG Chemicals, Inc. (KMGB, KMG, KMGB.OB), Wednesday said it will stop manufacturing operations at its KMG Italia subsidiary located in Milan, Italy, and shift the same to its facilities in France and the UK. The company said that this is in line with the global restructuring of its Electronic Chemicals operations. The company said that it will continue to operate its warehousing facility and customer service operations in Milan. The transfer will begin by end of 2013, and KMG Italia's production is expected to wind down over the next twelve months and cease fully by the end of calendar 2014.

As previously announced, the company said it expects one-time restructuring charges of $4-5 million in fiscal 2014, partially offset by incremental benefits of $2-3 million during the year from restructuring-related synergies and commercial benefits. Post completion in 2015, the restructuring is expected to register annualized benefits of $6-8 million for the company's Electronic Chemicals segment, excluding one-time projected restructuring charges of $7-9 million on a cumulative basis over fiscal 2014 and fiscal 2015. Additionally, the company anticipates a $2 million addition of capital expenditures primarily in fiscal 2014 to complete these plans.