UPDATE 1-Spartech to cut about 10 pct jobs, close facility

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March 19 (Reuters) - Spartech Corp (SEH.N: Quote, Profile, Research), a maker of engineered plastics and compounds, said it would cut 350 jobs, or about 10 percent of its total workforce, and shut down production at its Mankato, Minnesota sheet facility to reduce costs.

The job cuts are expected to be substantially completed within the next few days, and the Mankato business will be relocated to other production facilities by August, Spartech said.

Earlier this month, the company posted a first-quarter loss and said weak demand and higher costs for resin could continue for remainder of the year.

Spartech said it expects the restructuring to reduce consolidated operating expenses by about $9 million in fiscal 2008 and $16 million on an annual basis after completion. It also sees restructuring expenses of about $3 million.

The company's shares, which have lost nearly half of their value in the past month, were down 7 cents at $7.83 in afternoon trade on New York Stock Exchange. (Reporting by Nachiket Kelkar in Bangalore; Editing by Deepak Kannan)