BRAMPTON, ON—DATA Group Ltd., has announced plans to consolidate its Alberta operations into its flagship Calgary operations facility.

It will close its Edmonton operations facility at the end of 2016, but maintain a presence in Edmonton with a sales office. Other production capabilities may also remain in Edmonton, in a decision to come before operations end.

"We've been working hard to transform our company over the last year to provide it with a solid foundation upon which to build.  This focus has led to many strategic, but difficult decisions," Michael Sifton, president & CEO, said. "We're striving to be focused, optimized, united, and most of all agile, and we believe the decision to consolidate our operations in Alberta will help solidify our foundation for growth." 

The company plans to redistribute work to DATA’s Calgary location and other operations facilities across Canada. 

"The decision to close a manufacturing operation never comes easy, but we believe that making this change is a critical step in our transformation process," Alan Roberts, SVP, operations, said.  "Our Calgary facility, on the other hand, will grow by 50,000 square feet as work and warehousing from Edmonton will be transitioned there.”

DATA expects to incur approximately $3.5 million in restructuring expenses in the second half of 2016 related to the consolidation plans, consisting of severance costs associated with layoffs and the relocation of equipment.