Standex sells two properties for $3.6m



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Standex International Corp. announced Thursday the sale of its Northglenn, Colorado, air distribution manufacturing plant and its Murfreesboro, Tennessee, food-service equipment manufacturing facility to two separate buyers for $3.6 million. The operations of both facilities will be integrated into the Salem multi-segment manufacturer’s plant in Nogales, Mexico, which is scheduled to begin operations in January. The Salem-based Standex said it made the move to consolidate functions as part of its overall cost-savings strategy. "The relocation of these operations to Mexico reflects our goal to lower the cost of high-volume, labor-intensive products and expand Standex's products into untapped markets and geographic territories," said Roger Fix, Standex president and chief executive officer. "Proceeds from the sales will cover more than half of our initial investment in Nogales. Construction of the Mexican plant has been completed on schedule, and we have hired a team with deep experience in managing maquiladora operations to run the facility. Initial production in Nogales is slated to begin in January, and we expect the labor savings realized through the transfer of this production to flow entirely to the bottom line." The Colorado factory, which made galvanized pipe and fittings for the residential HVAC industry, was closed in the third quarter of 2005, which ended March 31, 2005. The facility in Tennessee manufactured beverage dispenser pumps. Standex will temporarily lease back the space until operations resume in Mexico. — CINDY KIBBE

 

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