Officials for PGT Innovations Inc. announced plans today for consolidating its Florida manufacturing facilities. The move will optimize operations and reduce fixed costs, they suggested. The company expects to cease production at its Orlando facility in June 2020, where its WinDoor and Eze-Breeze products are assembled, and plans to relocate the manufacturing of those products to Venice and Tampa, Fla., respectively.

“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,” said Jeff Jackson, PGT president and CEO. “Once completed, we anticipate this consolidation will reduce our annualized operating expense by $3.5 to $3.8 million.”

Recognizing an already difficult time for affected employees, “This decision was made after careful consideration, and we are committed to assisting our employees through this transition,” added Jackson.

The company expects to record pre-tax special item charges of approximately $4.2 million to $4.6 million. Approximately $3 million to $3.4 million of the charges are expected to be paid in cash and are attributable primarily to separation and retention-until-closure payments for employees, rent on the Orlando facility, and equipment relocation expenses.

Non-cash charges of approximately $1.2 million are related to certain product rationalization initiatives, the company reported. Most of the pre-tax special item charges are expected to be recorded in 2020 and most of the cash outflows are expected to occur in 2020.