Milgard to Close More Plants

November 8th, 2011 | Category: Industry News

In response to the challenging economy and state of the new residential construction and remodeling industries, Milgard Windows and Doors will close its Hollister, Calif., and Phoenix, Ariz., facilities. The company previously announced the closing of its Chicago facility.

“Milgard will continue to provide products and services to all markets served by the Hollister and Phoenix locations,” says Kathleen Vokes, director of communications for Milgard’s parent company Masco Corp.

During a third-quarter conference call to report on Masco Corp.’s earnings, Timothy Wadhams, president and chief executive officer, said these closures will save the company money in the long run.

“We also, in October, closed–announced the closure of three of our manufacturing facilities,” he said on the call. “That’s going to cost us, we estimate about $30 million, of which about $5 million will be cash. And we expect to save, on an annual basis, about $7 million, give or take. Those actions, together with some other actions that we’ve taken in other business units, should result in headcount reductions of about 750 for the period September through the end of the year. Obviously, those continue to be very, very difficult issues, difficult decisions, but certainly necessary in the environment that we’re in.”

He added, however that Milgard continues to outperform the Western markets in terms of repair/remodel new home construction.

“We’re gaining share,” he said. “We also continue to expand into Texas and Western Canada, and we’ve had some really good product introductions …. Our U.K. Window Group continues to do a nice job in terms of share.”

Although Milgard is discontinuing manufacturing operations in Chicago, it will maintain service personnel to support warranty obligations, according to Vokes. The Denver location will continue to provide products for Midwestern markets that have been served from the Denver location.

In August it was announced that the tempering facility in Tacoma, Wash., closed; the Dixon, Calif., facility remains open.

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