(11)Plant Consolidations

Restructuring Costs

On March 18, 2015, the Company committed to move forward with a plan to cease operations at its Raritan, New Jersey plant and consolidate operations into its Newburyport, Massachusetts facility and other UFP facilities. The Company’s decision was in response to a continued decline in business at the facility and the recent purchase of the 137,000 square foot facility in Newburyport. The Company expects the activities related to this consolidation to be completed on or before October 31, 2015.

The Company expects to incur approximately $1.1 million in one-time expenses in connection with the consolidation. Included in this amount are approximately $360,000 of expenses the Company expects to incur relating to employee severance payments and training costs, approximately $600,000 in moving expenses and expenses associated with vacating the Raritan property, and approximately $100,000 in lease termination costs. Total cash charges are estimated at $1.0 million. The Company expects annual cost savings of approximately $400,000 as a result of the plant consolidation.

The company recorded the following restructuring costs associated with the Massachusetts plant consolidation for the three- and six-month periods ended June 30, 2015 (in thousands):

Massachusetts Restructuring Costs	Three Months Ended June 30, 2015		Six Months Ended June 30, 2015

Relocation costs	$	24	$	24


Total	$	24	$	24

On July 16, 2014, the Company committed to move forward with a plan to cease operations at its Costa Mesa, California, plant and consolidate operations into its Rancho Dominguez, California, facility and other UFP facilities. The Company’s decision was in response to the December 31, 2014, expiration of the lease on the Costa Mesa facility as well as the close proximity of the two properties. This consolidation was completed during the first quarter of 2015. The company recorded the following restructuring costs associated with the California plant consolidation for the three- and six-month periods ended June 30, 2015 (in thousands):

California Restructuring Costs	Three Months Ended June 30, 2015		Six Months Ended June 30, 2015

Employee severance payments	$	—	$	18
Relocation costs	6		66


Total	$	6	$	84

On January 7, 2014, the Company committed to move forward with a plan to cease operations at its Glendale Heights, Illinois plant and consolidate operations into its Grand Rapids, Michigan, facility. The Company’s decision was in response to a pending significant increase in lease cost, declining sales at the Illinois facility, and significant anticipated savings as a result of the consolidation. The consolidation into the Michigan facility was completed during the third quarter of 2014. The company recorded the following restructuring costs associated with the Michigan plant consolidation for the three- and six-month periods ended June 30, 2014 (in thousands):

Michigan Restructuring Costs	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014

Employee severance payments	$	14	$	25
Relocation costs	106		115
Workforce training costs	65		113
Grand Rapids plant infrastructure costs	49		71


Total	$	234	$	324