What is the timeline for the closure of the UK facility?

The longest potential endpoint for the UK facility closure is Q1 of 2026, but the company aims to complete it by Q4 2025.

What is the status of US customer inventory levels and their impact on future orders?

Some US customers have high inventory and can wait, while others need to order sooner. The company has seen a slight uptick in orders, but the situation varies by customer.

Home / Business and Economy / UK Plant Closure Looms as Company Shifts Production to Sweden

UK Plant Closure Looms as Company Shifts Production to Sweden

Q: How will the closure of the UK operations impact the company's revenues?

The closure will reduce revenues by approximately $25 million to $30 million, with some offset from converting rolls to forged rolls, resulting in a net impact of around $20 million to $25 million.

14 Aug

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Summary

UK facility closure by Q4 2025 or Q1 2026
$5 million operating income improvement expected
Revenues to drop $20-25 million due to closure

UK Plant Closure Looms as Company Shifts Production to Sweden

As of August 15, 2025, the company is preparing to close its UK facility by the end of the year or early 2026. The closure is expected to result in a $5 million improvement in operating income, as major cost reductions will occur once casting stops. The company will continue to ship products and receive customer payments, improving cash flow during the transition.

The closure will reduce the company's revenues by approximately $20 million to $25 million, with some offset from converting rolls to forged rolls. To help mitigate the impact, the company is shifting some production to its Sweden plant.

Meanwhile, the company has seen a slight uptick in orders from US customers, but the situation varies. Some US customers have high inventory levels and can wait, while others need to order sooner. Due to lead times, any new orders would be delivered in November or December 2025.

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