Manufacturing Consolidation Program

6 Months Ended

Jul. 02, 2011

Manufacturing Consolidation Program [Abstract]

Manufacturing Consolidation Program

(14) Manufacturing Consolidation Program:

In May 2010 the Company announced a plan to optimize its custom bearings manufacturing capacity by expanding its manufacturing capacity in Sumter, South Carolina. This facility, with Kaydon’s existing Sumter facilities, is designed to create a custom bearings center of excellence and is expected to allow the Company to grow its market share, realize overhead cost reductions and leverage its engineering capabilities. In connection with this plan, the Company closed its Mocksville, North Carolina manufacturing facility. This manufacturing consolidation program is within the Friction Control Products reporting segment.

During the second quarter and first half of 2011 the Company incurred $0.5 million and $1.4 million, respectively, in cost of sales for engineering, relocation, recruiting, travel, training and other start-up costs in Sumter associated with the manufacturing consolidation program, which substantially completes the program.