NORTH VENICE — PGT Innovations Inc. is closing its Orlando manufacturing facility and moving that production to plants on Florida’s west coast.
The shutdown will occur in June. Production of the WinDoor line will move to the North Venice plant, while its Eze-Breeze line will be made in Tampa.
The company announced the changes Monday.
“Consolidation of our Florida facilities is an important step in our integration plans following the acquisition of NewSouth Window Solutions that we expect to improve our overall operations, strengthen our business and reduce costs,” PGT President and CEO Jeff Jackson said in a news release. “Once completed, we anticipate this consolidation will reduce our annualized operating expense by $3.5 to $3.8 million.”
The acquisition of Tampa-based NewSouth was completed in February. It has nine Florida showrooms.
“We recognize this can be a difficult time for affected employees,” Jackson said. “This decision was made after careful consideration, and we are committed to assisting our employees through this transition.”
PGT had previously stated that it had made no workforce reductions related to the economic effects of the coronavirus. It didn’t respond to a request Tuesday about whether the economy was a factor in the closing of its Orlando facility.
In announcing enhanced safety measures April 8, the company noted that it had “taken several actions intended to preserve cash through cost reduction and minimizing capital expenditures, while continuing to produce the products needed by our customers,” according to Senior Vice President and Chief Financial Officer said Sherri Baker in a news release.
At that time PGT reported liquidity of about $140 million and no scheduled debt payments required until October 2022.
Capital expenditures were being delayed or canceled and discretionary spending was being reduced.
And the company had to withdraw its full-year 2020 guidance, which projects future earnings, after preliminary first quarter “double-digit sales growth that was in line with our internal estimates,” Baker said. “We expect to provide an update when we report our results for the first quarter of 2020.”
That happens on May 13.