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Conn-Selmer to Close Elkhorn Factory

Conn-Selmer, a subsidiary of Steinway Musical Instruments, recently announced that it will be closing its brass manufacturing operations in Elkhorn, Wis. The production at the 58,000-square-foot plant will be transferred to the company’s facilities in Eastlake, Ohio.

“Our Eastlake facility is well-known for its production of French horns and other brass instruments under the C.G. Conn and King brand name,” said John Stoner, president of Conn-Selmer. “The addition of the Holton product to Eastlake production takes advantage of the expert craftsmanship already established there. We have sufficient inventory to meet customer needs during the transition of production, which we expect to be completed over the next two months.”

The Elkhorn plant closure will impact approximately 70 active employees. Over the second and third quarters of 2008, Steinway expects to incur charges of $1.3–$1.7 million in connection with the plant closure. Gross margins in 2008 are also expected to be negatively impacted by an additional $500,000–$700,000 as production is transitioned from Elkhorn to the Eastlake facility.

“Consolidating similar manufacturing operations in order to increase production efficiency is an integral part of our manufacturing strategy,” said Dana Messina, CEO of Steinway. “While this was a difficult decision, this consolidation will allow us to increase our efficiency and compete more effectively.”;