Chelmsford Plant Closure Means 45 Jobs Lost

Portland, Oregon based Electro Scientific Industries, Inc. has announced a corporate restructuring to streamline its manufacturing and development operations that will include the closure of its plant in Chelmsford.

The closure of the company’s assembly plant and development center in Chelmsford will include staff reductions of approximately 45 employees, the company said in a statement. Products currently developed and manufactured in the Chelmsford plant will be transfered to other facilities.

The company, which is an innovator in laser-based manufacturing solutions for the microtechnology industry,says the financial impact of the restructure will be an annualized pre-tax cost savings of approximately $4.5 million once fully implemented during the fiscal third quarter ending December 2015. The company expects pre-tax charges of approximately $5.5 million in severance and facility-related costs, of which $2.0 million is expected to be recorded in the fiscal fourth quarter ending March 2015.

“This action will enable us to further focus our efforts on growing our business while consolidating manufacturing facilities and lowering our fixed cost base,” said Edward C. Grady, president and CEO of ESI in a statement. “I would like to express my sincere appreciation to the affected employees for their valuable contributions to ESI. While these moves are difficult, they are a necessary step in our revitalization plan, to position us for future growth and profitability.”