Knoll, Inc. will consolidate its manufacturing footprint in North America, resulting in the closure of the company’s Grand Rapids, Michigan manufacturing facility. The closure is part of an initiative to optimize the company’s North American manufacturing operations. Approximately 180 hourly and 30 salaried positions will be impacted.
Under the restructuring plan, the Grand Rapids manufacturing operations are expected to be substantially closed by the end of the 2Q 2020, with the remaining restructuring expected to be complete by the end of 2021. Manufacturing operations are expected to transition to other Knoll manufacturing sites in North America.
Knoll stated that existing manufacturing operations in East Greenville, PA; Muskegon, MI; and Toronto, Ontario (Canada) are not otherwise impacted by the restructuring plan.
Knoll will continue manufacturing and distributing all products lines currently manufactured in Grand Rapids.
Impacted associates will receive severance packages, and some will be offered the opportunity to relocate to other Knoll facilities.
The facilities consolidation is expected to result in annual cost savings to Knoll of approximately $10.0 to $11.0 million. It will also entail an accumulation of restructuring charges over a multi-year period of approximately $18.2 million.
