Redbox production to shift to Texas

Feb. 01, 2013 @ 06:21 PM

A plant in Creedmoor that was the primary Redbox kiosk production plant for Bellevue, Wash.-based Coinstar is closing, and company officials have worked to shift kiosk production to Texas.

Flextronics Americas is closing the Creedmoor plant, which is in neighboring Granville County, as part of a strategic realignment. Singapore-based Flextronics, a services provider to electronics equipment companies, said in its third-quarter earnings release that it expects $100 to $125 million in pre-tax restructuring charges in its fourth quarter, primarily in employee severance and benefits costs.

The Creedmoor plant closure is expected to impact 157 workers. A notice sent to the N.C. Department of Commerce’s Division of Workforce Solutions said the closing will occur in phases. All layoffs are expected to be complete by the end of March.

Marci Maule, public relations director for Coinstar Inc., said in an email that Creedmoor was the primary production plant of Redbox kiosks.

Coinstar officials have been working with Flextronics management to ensure the company has a “smooth transition” to another plant in the country, she said.

Kiosk production has moved to Plano, Texas, she said in an email.

“We’re really comfortable that we’ll continue to be able to meet our needs at the new facility,” she said.

Maule said the Creedmoor closure was a Flextronics management decision.

“We’re pleased that we’ve been able to work closely with Flextronics management in ensuring a smooth transition,” she said.

Coinstar is an automated retail solutions provider. Its products include Redbox self-service kiosks where consumers rent or buy movies and video games, as well as self-service coin-counting kiosks where consumers can convert their coin to cash or “stored value” products.

The company said in its third-quarter earnings results announcement in October that it had 42,400 Redbox kiosks in 34,600 locations.

The company reported net income for the third quarter of about $36.8 million, which was down about 1 percent from the same quarter in the previous year.