Energy Recovery to consolidate North American operations

Energy Recovery, Inc. (San Leandro, CA), maker of devices for reducing the energy consumption at desalination plants, has announced a plan to consolidate all of its North American operations in San Leandro. The plan will involve the closure of Energy Recovery’s operations in Michigan, where the company assembles its turbochargers and pumps, and the relocation of those operations to the San Leandro headquarters and production center. To implement this consolidation, the company expects to record non-recurring expenses in the current year of approximately $4.7 million, including a loss on sale of $1.3 million, moving costs of $0.4 million, and employee severance and other estimated transition costs of approximately $1.8 million. The firm anticipates that the consolidation will generate recurring cost savings in subsequent years on the order of $3 million, resulting mainly from reductions in headcount and other overhead expenses.