Flowserve Restructuring to the Tune of $27 Million

By Lisa Nadile

DALLAS, TX—Flowserve officials say they are spending $27 million to restructure their company to strengthen its position in petroleum and chemical markets and to better allocate resources. The plan will allow a better focus on productivity and streamline its workflow process for “better value creation,” they say.

About 9 percent of Flowserve's workforce will be cut. In addition to closing its engineering office in San Jose, CA, the company also terminated the services of 100 employees at its valve-automation systems manufacturing plant in Cincinnati, OH. Flowserve will announce further reductions and closings this year.

The company will take a restructuring charge of about $16 million and nonrecurring charges of about $11 million against its fourth quarter, 1999 financials. Year 2000 costs will be for the relocation of some employees and equipment, and for retention bonuses and other costs to facilitate the transfer of manufacturing operations to other Flowserve facilities. For more information, visit http://www.flowserve.com.


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