Carlisle Tire & Wheel is planning to consolidate its U.S. steel wheel manufacturing at one plant in California and is consolidating its tire distribution activities in the Southeast and Texas in efforts to improve service to customers and reduce costs.
In California, Carlisle intends to consolidate work at three California wheel plants to one plant in the Ontario area over the next few months, according to Fred Sutter, president of Carlisle Companies Inc.'s Transportation Products division, which includes Carlisle Tire & Wheel. The plants make Carlisle's high-speed steel trailer and styled steel wheels.
The three wheel plantsin Long Beach, Paramount and Ontarioeach do one part of the wheel manufacturing process, rolling, stamping and welding, respectively.
By closing Long Beach and Paramount and consolidating their processes at one plant, Carlisle expects to achieve better work flow through lean manufacturing and ultimately provide better service for the customer, Mr. Sutter said.
Carlisle has not selected which facility eventually will house the combined manufacturing, Mr. Sutter said, noting that further analysis is pending.
The company operates several plants in the Ontario area. By consolidating in Los Angeles' ``Inland Empire'' area, Carlisle will be able to offer many of the displaced workers jobs at the new operation.
The consolidation should be completed by mid-2009.
Regarding its distribution assets, Carlisle is consolidating three warehouse distribution centersin Lakeland, Fla., Springfield, Tenn., and Lithia Springs, Ga.at a 660,000-sq.-ft. center opened in October in McDonough, Ga., about 20 miles southeast of Atlanta on Interstate 75.
In Texas, Carlisle is consolidating the distribution center in Mount Pleasant at its center in Grand Prairie, located between Dallas and Fort Worth.
The changes, disclosed in Car-lisle's third quarter earnings release, will take place throughout the fourth quarter and into early 2009. They will be a ``significant upgrade'' to Carlisle's distribution efforts in the Southeast and Southwest, Mr. Sutter said.
Carlisle estimates the moves will cost it about $3.5 million pre-tax.