[August 01, 2016] |
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Nortech Systems to Close Facility in Augusta, Wisconsin
Nortech Systems (News - Alert) Incorporated (Nasdaq: NSYS), a leading provider of
full-service electronics manufacturing services (EMS), today announced
plans to close its manufacturing facility in Augusta (News - Alert), Wis., by the end
of 2016.
The three primary EMS markets served by Nortech Systems are industrial,
medical and aerospace/defense. Since 1992, the Augusta facility has
served mainly an industrial customer base and defense overflow
production that aligned with their custom cable capabilities.
"Our industrial customers have been hit the hardest by the slow economy
and the defense business has been impacted by major defense budget cuts
over the past several years," said Rich Wasielewski, president and CEO
of Nortech Systems. "This was a difficult decision but we were unable to
keep the facility open due to changing customer requirements and lower
demand."
Consolidation and restructuring costs are expected to be offset with
savings and have minimal financial impact on the company's 2016 results
and become fully accretive once the consolidation has been completed.
About NortechSystems Incorporated
Nortech
Systems Incorporated (www.nortechsys.com),
based in Maple Grove, Minn., is a full-service electronics manufacturing
services (EMS) provider of wire and cable assemblies, printed circuit
board assemblies, and higher-level complete box build assemblies for a
wide range of industries. Markets served include industrial, medical and
aerospace/defense. The company has operations in the U.S., Latin America
and Asia. Nortech Systems Incorporated is traded on the NASDAQ Stock
Market under the symbol NSYS.
Forward-Looking Statements This
press release contains forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform Act of
1995. While this release is based on management's best judgment and
current expectations, actual results may differ and involve a number of
risks and uncertainties. Important factors that could cause actual
results to differ materially from the forward-looking statements
include, without limitation: volatility in market conditions which may
affect market supply of and demand for the company's products; increased
competition; changes in the reliability and efficiency of operating
facilities or those of third parties; risks related to availability of
labor; commodity and energy cost instability; general economic,
financial and business conditions that could affect the company's
financial condition and results of operations; as well as risk factors
listed from time to time in the company's filings with the SEC (News - Alert).
View source version on businesswire.com: http://www.businesswire.com/news/home/20160801006259/en/
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