Expansion of LaPorte, Indiana Operations

9 Months Ended

Jun. 30, 2016

Expansion of LaPorte, Indiana Operations

Expansion of LaPorte, Indiana Operations

Note 17.  Expansion of LaPorte, Indiana Operations

The Company announced on May 2, 2016 its decision to expand and streamline its distribution footprint by investing in new plant and equipment at its processing facility located in LaPorte, Indiana.  In connection with the expansion, the Company plans to relocate its service center operations in Lebanon, Indiana to LaPorte.  The project is expected to begin in the fourth quarter of calendar 2016 and be completed by the end of calendar 2017.  

Costs associated with the project are estimated to consist of approximately $1,800  to $2,500 relating to equipment relocation and approximately $500 to $1,100 in other costs, including one-time termination benefits, relocation expenses and lease termination costs, for a total of approximately $2,300 to $3,600 in total costs relating to the move.  Approximately $340 of these costs were expensed in the third quarter of fiscal 2016, and the remainder will be recorded as incurred over the project period.