FORT LEE, N.J. -- Officials with Fort Lee-based Pioneer Power Solutions, a company that manufactures, sells and services electrical transmission equipment, said efforts to consolidate operations and cut jobs is expected to save $2.5 million annually.
Low-voltage production of the company's Bemag division, in Farnham, Quebec, was successfully moved to the company's facility in Reynosa, Mexico. A portion of that business went to a manufacturing partner in India, company officials said.
Company officials estimate that change will save about $1.3 million each year. Also, in November, staff cuts were made to each of the U.S. business units, saving about $750,000 each year, company officials said.
Operations of Pacific Power, acquired in August 2015, into the company's existing facility in southern California is expected to be completed by Jan. 31. Also, company officials are consolidating the Titan headquarters' facility into the company's existing Minneapolis location in January.
"We promised our shareholders that we would take decisive action to return the company to an acceptable level of profitability, and we are delivering on that promise," said Nathan Mazurek, Pioneer's chairman and chief executive officer.
There is still some work to do to make up that $2.5 million savings, he said, noting "the most significant portions of these efforts are already completed, and we are highly encouraged with the progress to date."
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