Nortech Systems to Close Facility in Augusta, Wisconsin
02 August 2016 - 6:43AM
Business Wire
Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider
of full-service electronics manufacturing services (EMS), today
announced plans to close its manufacturing facility in Augusta,
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 Nortech Systems
IncorporatedNortech 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
StatementsThis 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160801006259/en/
For Nortech Systems Incorporated:Warren Djerf,
952-920-3908Brookside Communications Groupwarren@brookcomm.net
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