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AEROVOX TO CONSOLIDATE CANADIAN OPERATION IN NEW BEDFORD PLANT

 AEROVOX TO CONSOLIDATE CANADIAN OPERATION IN NEW BEDFORD PLANT
 NORTH DARTMOUTH, Mass., Jan. 14 /PRNewswire/ -- Aerovox Incorporated (NASDAQ: ARVX) has announced that the company will close its wholly owned subsidiary, Aerovox Canada Ltd., on April 2, 1992, and consolidate manufacturing operations in the company's New Bedford, Mass., plant.
 The operation located in Amherst, Nova Scotia, is essentially a satellite plant to service the Canadian market. It manufactures capacitors for fluorescent ballasts, HID lighting, power factor correction and motor run applications. Equipment situated in the Amherst plant will be moved to New Bedford, thus consolidating all Aerovox capacitor manufacturing in the Massachusetts plant.
 The company stated that the decision to close its Canadian operation was dictated by the Free Trade Agreement and in particular its provision for a five-year phase out of duties on capacitors. The agreement, in effect, eliminated the justification for a two-plant operation to serve what is now a single market. In the past the duty protection more than compensated for the $700,000 in additional overhead. In addition, manufacturing costs are greater in Amherst than in New Bedford.
 Since the agreement was implemented, Aerovox has actively sought alternatives that might be operated cost effectively, and therefore competitively, in Amherst. Despite a joint effort with the Canadian government to find such an alternative and the promise of financial aid from the Canadian government for new equipment, no alternative that could counter the cost of producing in Canada was found.
 -0- 1/14/92
 /CONTACT: Mary Mandeville of Aerovox, 508-995-8000/
 (ARVX) CO: Aerovox, Incorporated ST: Massachusetts IN: SU:


TM -- NE002 -- 9439 01/14/92 09:51 EST
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Publication:PR Newswire
Date:Jan 14, 1992
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