S&P: ON Semiconductor unaffected by plant closing

ON Semiconductor Corp. (B/negative/--) announced plans to close its manufacturing plant in East Greenwich, R.I., anticipating savings of $20 million-$25 million in 2005.

The closure will entail a $15 million-$20 million restructuring charge, of which about $4 million will be cash, in the December 2003 quarter. ON Semiconductor will eliminate about 330 manufacturing positions, to be replaced by personnel in a lower-cost facility overseas.

Standard & Poor's said that the action would have no effect on its ratings on ON Semiconductor. S&P said it does not expect the plant shutdown to materially improve ON Semiconductor's weak debt protection measures.

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