MyEco Group (ASX:MCO) said that as part of its operational restructuring initiatives, it reduced fixed costs by consolidating three manufacturing plants into a global manufacturing plant in Nanjing, China, that produces resin, film, and bags, according to a Tuesday Australian bourse filing.
It also reduced costs from the rationalization of manufacturing assets in Malaysia and the relocation of larger pilot production equipment from Melbourne to the commercial plant in Nanjing to reduce costs for new product trials.
The initiatives, which are expected to be completed by June, are expected to deliver around AU$2.5 million to AU$3 million in reduction in fixed cost, beginning in the first quarter of fiscal 2026.
The firm will recognize one-off costs of around AU$700,000 to implement the restructuring in the current fiscal year.
Its shares jumped over 12% in recent trading on Tuesday.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.