[Satnews] Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a National Security Solutions provider, announces it is consolidating certain of its Modular System Division’s (MSD) facilities in a restructuring move, which will result in the closing of Kratos’ Charleston Marine Container (CMCI) manufacturing plant. The facility consolidation is being driven by the need to improve MSD manufacturing efficiencies, operational performance, profit margins and cash flow.
Commenting on the CMCI plant closure, Kratos’ Chief Executive Officer, Eric DeMarco commented, “In the extended period of reduced DoD spending, Kratos’ customers expect and demand that we continue to reduce costs and improve efficiency to remain financially strong and competitive. The decision for a facility consolidation, MSD restructuring and related plant closure in Charleston, while extremely difficult, allows for reduced cost and increased overall MSD manufacturing efficiency, while simultaneously preserving our manufacturing capacity for the future when certain programs Kratos has previously been working under are turned back on, and certain new opportunities come to fruition. Accordingly, Kratos’ CMCI plant will be ceasing operations; however, the plant will be retained such that we can reopen the facility in Charleston when adequate new business is obtained. We anxiously look forward to the day when we can welcome our Charleston employees back to CMCI.”