Flexsteel to Consolidate Production of Vehicle Seating

    DUBUQUE, Iowa--Nov. 15, 2001--Flexsteel Industries, Inc., has announced the planned consolidation of its Indiana vehicle seating manufacturing into its New Paris facility by closing its Elkhart facility. The Elkhart facility is expected to close December 20, 2001.
    K. Bruce Lauritsen, Flexsteel's President and Chief Executive Officer, said that the consolidation is necessary due to the slowdown in the economy and continued poor business conditions in the vehicle seating industries, especially for van conversions and travel trailers, which are the primary products of the Elkhart plant. The Elkhart products will be shifted to New Paris, so customers will notice no difference in scheduled shipments. "We expect that during the next six months production workers will be offered employment in our New Paris plant as products are transferred from Elkhart and demand for vehicle seating products increases in the spring of 2002." Additionally, some administrative personnel will be offered employment in New Paris.
    The larger New Paris plant should offer greater production efficiencies with all units produced in the same plant, Lauritsen said. He noted the New Paris plant with its metal parts production capabilities is more suitable for efficient production.
    A total of 84 employees are affected by this consolidation, including 32 employees who had been previously laid off.
    The Company estimates the closing of the Elkhart plant will result in net restructuring costs and potential asset impairments of approximately $640,000 or $0.10 per share of outstanding common stock.