I believe that we can actually create those cost improvements in a sustainable way that were not exposed from volatility going forward. And if that’s the case, that will be a key input factor because that will give us the conviction, the credibility that we’re back to where we were two years ago. And then, of course, looking at the capital markets, access to that will define timing. If we need to supplement our existing cash flows with capital market activity, that will see certainly, early next year where we are, and then we are, I think, in a very good position to make a decision.
Unidentified Analyst : Understood. much appreciate on this Thomas. Thank a lot.
Thomas Meth : Thank you very much. Drew.
Operator: [Operator Instructions]. The next question will be from Ryan Levine with Citi. Please go in.
Ryan Levine : Hey, everybody. What drove the timeline to announce the expansion of Ahoskie? And are there any resources that are being dedicated to the cost reduction initiatives that are going to be repurposed for this expansion?
Thomas Meth : Right. Great question. Look, I mean we recently decided that it was not the right time to do Ahoskie. The project will cost approximately $3 million. And we’re installing equipment, which prepares to size [ph] for upcoming capacity expansion. On the one hand, for — to shut the plant down for a couple of weeks is never a good time, but we thought this was really improving optionality for us to think about this on a long-term basis, right? We have to — this business has to be looked at from a long-term basis. And we preparing us for an expansion and installing the right and necessary equipment there puts us on a path to maximize long-term profitability for this business, and that includes Ahoskie. From a project execution perspective, the resources that we’re using are separate and distinct from all the cost reduction initiatives.
They do not cannibalize each other if that’s what you’re getting at. Despite the fact that we certainly reduced our headcount quite substantially, certainly not in those areas that are required to drive cost out of the business and complete that Ahoskie step change.
Ryan Levine : Okay. And then a follow-up on that. In terms of some of the severance costs that you disclosed that will be impacting the third quarter. Is that — is there going to be any of that will continue into the fourth quarter? And more broadly, how have you been seeing turnover trends in recent weeks?
Thomas Meth : Ryan, thank you for that question. So, we expect this reduction to be completed in Q3 and the associated cost with that end with the $5 million that we have outlined for Q3. Our focused management of the plants has really had a positive impact on the morale on the operations team. And I mean when you go to the plants, the added — the go-get attitude of rolling up your sleeves and focusing on the things that matter is really, really nice to see. And so before — and I exclude obviously the reduction in force, but we did see over the last two months or three months turnover come down in a really positive form, and we expect that trend to continue.
Ryan Levine : Great thank you for taking that question.
Thomas Meth : Absolutely. Thank you, Ryan.
Operator: Thank you. The next question will be a follow-up from Elvira Scotto of RBC Capital. Please go in.
Elvira Scotto : Hey, thank you for taking with our question. Can you remind me — can you use the muni bonds for bonds? And then when you think about financing that, what rate do you expect? What interest rate would you expect to be able to finance that?
