7.20.09 | Muscatine, IA | Office furniture and fireplace insert manufacturer HNI Corp. says it's closing a North Carolina factory to reduce costs.

The Muscatine, Iowa-based company announced Friday the Louisburg, NC., office furniture manufacturing plant will be closed by the end of the year. Work will be moved to other locations.

The plant employs 93 workers. The closing will save an estimated $1.8 million a year starting next year.

HNI says it expects the shutdown to cost about $3.4 million, reducing earnings by about $800,000 in the second quarter and nearly $1 million in each of the third and fourth quarters. Another $500,000 in costs will be reported next year.