Invacare Shuttering Ontario Plant, 70 Losing JobsInvacare Shuttering Ontario Plant, 70 Losing Jobs

Citing its need to "remain cost competitive by optimizing its global supply chain," Invacare Corp. has announced that it will close its plant in London, ON, Canada, by mid-2014. The closure of this plant will cost about 70 jobs.

Elyria, OH-based Invacare bought the London plant in 2003 from Carroll Healthcare; it made long-term care beds and other furnishings, according to  the London plant manufactures both long-term-care beds and furnishings for long-term-care facilities, according to a story for the London Free Press.

Corporate spokeswoman Lara Mahoney told London AM980 radio reporter Jess Brady that the company is working with the Canadian Unifor union's Local 27 to work out severance packages. She said the plant closure was about being more efficient and cost competitive.

"These associates have been a big part of our success as a company and it's a difficult decision to make. So we will ensure that we treat them as fairly as possible," Mahoney said.

Mahoney said production of the case goods (furnishings) will shift to Invacare's plant in Sanford, FL, while the long-term beds will be outsourced to a third-party manufacturer that has not yet been named.

The company has been in hot water with FDA since a Warning Letter was issued in December 2010. According to a shareholder presentation from May 2013, Invacare has been operating under a consent decree since December 2012.

Invacare reported a loss of $51 million in their 2013 Annual Report, an improvement from a loss of $11.1 million in 2012. The company estimates the shutdown will cost at least $3.5 million but will save the company about $2.7 million per year beginning in 2015, and said its goal is to return to profitability by 2016.