The Timberland Company has unveiled plans to consolidate its Caribbean manufacturing operations. Its manufacturing facility in Isabela, Puerto Rico, is to close at the end of 2005 the facility in the Dominican Republic is to expand its volume.

Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, said "This has been a difficult decision for us, and we are committed to assisting the 316 Isabela-based employees during this transition period. We intend to provide affected employees with a comprehensive programme that includes financial assistance, vocational planning, search assistance, training and counselling and will coordinate with local agencies to offer additional government services."

The new approach is anticipated to yield cost savings of approximately $4 million in 2006, with benefits weighted toward the second half of the year and annual cost savings of approximately $5 million in subsequent years.

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