Armstrong Flooring closes plant in Los Angeles after 82 years of operation | Local business

Ailing manufacturer Armstrong Flooring announced on Friday that it will close its flooring plant near Los Angeles in the first quarter, where 58 people are idle.

The shutdown of the South Gate, Calif. Facility is part of Armstrong’s efforts to optimize the use of its tile manufacturing facilities, the company said in a filing with the Securities and Exchange Commission. The website makes vinyl tile floors.

Armstrong said it will collect input tax fees of $ 6 million to $ 8 million for asset depreciation and termination fees. Less than $ 1 million is also expected to be spent on employee separation.

The announcement comes six weeks after the company reported a net loss of $ 31.2 million for the first nine months of 2020. This brings the net loss since 2018 to USD 252.7 million.

Armstrong announced plans to build the South Gate plant in 1937 at a cost of $ 1 million after the Los Angeles Chamber of Commerce suspended for eight years, the Los Angeles Times reported at the time. The company, then called Armstrong Cork Co., started operating the facility the next year to serve the growing west coast market.

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