MILWAUKEE (AFX) - Thomas Equipment Inc., a maker of products for the industrial, construction and agricultural industries, said Wednesday it will close and sell its skid loader manufacturing, engineering and sales facility in Busan, South Korea as part of the company's restructuring plan.
Thomas Equipment said the plant has failed to achieve expected production and financial goals.
The facility designed and produced Model 155 skid steer loaders, and housed sales and operations for divisions of Pheutech Inc. Technical and engineering problems with the loaders kept them from producing material revenue for Thomas. The company said it plans to fix the engineering issues in the next 90 days and produce the loaders at its New Brunswick, Canada plant.
Certain skid loader intellectual and capital assets will be relocated to the company's Centreville, Canada facility, while others will be sold. Inventory, buildings and land will be sold as well. The company also said it is evaluating strategic opportunities and personnel needs for the Pheutech units.
Thomas will use proceeds from any asset sales to lower debt owed to Laurus Master Funds Ltd.
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