Rayovac Says It Will Close Plant

Thursday, January 18th 2001, 12:00 am

By: News On 6

MADISON, Wis. (AP) â€” Rayovac Corp. will close its lantern battery and flashlight assembly plant in Wonewoc, eliminating about 240 jobs, and will lay off another 40 workers at its Fennimore plant as part of previously announced plans to restructure.

The combined cuts announced Thursday represent about 8 percent of the company's worldwide work force.

``Streamlining our manufacturing operations will reduce costs, maximize asset utilization, improve operating efficiencies and enhance our growth prospects and performance over the long term,'' said Dave Jones, Rayovac chairman and chief executive.

Rayovac said the heavy duty lantern batteries produced at Wonewoc make up only a small portion of the overall battery market and are used in a very limited number of applications. It said it already purchases the majority of its flashlights from outside vendors.

The plant shutdown will begin in eight weeks and will be completed by August 2001, Rayovac said.

The company said the layoffs at Fennimore will take place as the plant's manufacturing space is reconfigured to accommodate the installation of the new high-speed AA-size alkaline battery line, and some manufacturing functions are turned over to an outside vendor.

Rayovac said the job cuts will be fully implemented in the next six to eight months. It said it would announce several restructuring initiatives in its international operations during the coming months.

The company said cash costs of the restructuring are expected to be about $8 million. Savings are estimated at $8 million to $9 million annually, beginning in late 2001.

In afternoon trading on the New York Stock Exchange, Rayovac was up 38 cents at $17.75 a share.

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On the Net:

Rayovac site: http://www.rayovac.com