Molding equipment supplier Barnes Group Inc. released details of a restructuring plan that it says was necessary due to the COVID-19 pandemic. The Bristol, Conn., company said it will take an $18 million restructuring charge in the second quarter of 2020, most of which is related to severance payments. “The unprecedented disruption in global industrial and aerospace end markets brought on by the COVID-19 pandemic necessitates our adjusting costs throughout the Company to align with demand,” said Patrick J. Dempsey, president and CEO of Barnes Group. “With the continued uncertainty related to the pace of recovery, we have had to make some difficult decisions.”
The company expects to realize about $30 million of annualized cost savings from the restructuring beginning in the second half of this year. Barnes’ portfolio includes hot-runner brands Synventive, Thermoplay and Männer, as well as mold and control systems brands Gammaflux, Priamus, Foboha and Männer.