TPI COMPOSITES, INC (TPICQ): restructuring charge — TPI Composites announces restructuring plan, to close China factory and cut 18% of workforce

TPI COMPOSITES, INC

Ceasing production at Yangzhou, China facility; global headcount reduction of ~18%.
Estimated pre-tax charges of $45-60M in 2022, including $24-27M cash charges paid mainly in 2023.
Additional $45M excess contract costs on Matamoros, Mexico supply agreement through June 2024 ($30M in 2023, $15M in 2024).
Restructuring actions start December 2022; charges excluded from non-GAAP financial measures.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

TPI COMPOSITES, INC announced a restructuring with charges of approximately $45 to $60 million affecting Yangzhou, China manufacturing facility (approximately 18%).

Type: restructuring
Charge: approximately $45 to $60 million
Affected area: Yangzhou, China manufacturing facility
Headcount: approximately 18%

Exact text from the filing

On December 2, 2022, TPI Composites, Inc. (the Company) committed to a restructuring plan in order to rebalance the organization and optimize its global manufacturing footprint. In connection with the plan, and as previously announced on November 3, 2022 in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, the Company intends to cease production at its Yangzhou, China manufacturing facility. The Company will reduce its global headcount by approximately 18%, primarily in geographies most impacted by demand. The Company will take action under the restructuring plan beginning in December 2022. The Company currently estimates that it will recognize pre-tax charges to its 2022 financial results of approximately $45 to $60 million, consisting primarily of costs to shut down the Yangzhou manufacturing facility, severance and other one-time termination benefits, real estate-related charges, contract-related asset impairments and other costs.

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6 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

TPI COMPOSITES, INC filing history →

Source: SEC EDGAR

accession 0001171843-22-007795

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