Kennametal to close 3-5 plants by end of FY27

The company states: “Kennametal (KMT) announced that it has initiated several actions that support the long-term competitiveness of the Company and align with the Investor Day commitments the Company made on September 8, 2023, including three to five plant closures by the end of Fiscal 2027. Within the Metal Cutting segment, the Company intends to close a facility in Greenfield, MA and consolidate two facilities near Barcelona, Spain into a single, modern facility. Subject to negotiations with local employee representatives, the operations in Greenfield, MA are expected to cease in April 2025 and the plant closure is expected to be substantially complete by December 31, 2025. The consolidation of the Barcelona, Spain facilities is expected to be substantially complete by June 30, 2025. Additionally, to mitigate softer market conditions, especially in EMEA, the Company has initiated a global action to reduce structural costs by removing certain professional headcount. These combined actions are currently expected to deliver annualized run rate pre-tax savings of approximately $15M by the end of Fiscal 2025. The Company expects to incur pre-tax charges of approximately $25M in connection with the execution of these actions; of which approximately $10M is for cash-related facilities charges, approximately $10M is for severance-related cash expenditures and approximately $5M is for non-cash facilities charges.”