Rogers Corporation (NYSE: ROG) has announced plans to streamline its operations and drive margin improvement, with the intention to wind down manufacturing of advanced circuit materials and related activities at its Evergem, Belgium factory by mid-2025. The company expects these actions to result in an improvement of operating profit between $7 to $9 million annually, once fully implemented. However, to achieve these savings, Rogers anticipates incurring total charges in the range of $18 to $28 million, comprising of employee severance and related shutdown expenses.
Colin Gouveia, President and CEO of Rogers Corporation, stated that the company is committed to treating all affected employees fairly and respectfully. He also emphasized that the intended actions will not only improve customer service levels, but also drive higher factory utilization rates, lower future costs, and increase margins.
Rogers Corporation, a global leader in engineered materials, aims to continue supporting its advanced circuit materials customers through its existing footprint in China and the United States. The company's advanced electronic and elastomeric materials are used in a wide range of applications including EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, and industrial equipment.
These strategic actions reflect the company's commitment to adapting to shifting customer demand and optimizing its global operations footprint to drive efficiency and profitability. Following these announcements, the company's shares moved -1.8%, and are now trading at a price of $118.67. For the full picture, make sure to review Rogers's 8-K report.
