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RESTRUCTURING PLAN:
3 Months Ended
Mar. 31, 2016
RESTRUCTURING PLAN:  
RESTRUCTURING PLAN:

 

NOTE 13 — RESTRUCTURING PLAN:

 

In 2016, the Company initiated a restructuring plan with the overall goal to improve its sustainable earnings potential, asset utilization and operational performance. The plan implementation began in the first quarter of 2016. The plan focuses on achieving the appropriate administrative workforce size, skill requirements, changes in management structure and consolidating functions for efficiency, including staff location and/or relocation. The plan is being developed and managed by senior management of the Company’s majority shareholder, with assistance from an independent consulting group and is being implemented in stages as functional areas of the Company are reviewed.

 

The Company has recorded a provision related to this plan which is included in selling, general and administrative expenses. As part of the plan, 180 employees, located in Peru and Mexico, have accepted the severance package offered by the Company. As the restructuring plan is a work-in process the final cost is not yet known. The Company concluded that this or any additional provision necessary to complete the plan will not be material to the Company’s results.