Nortech Systems to shutter Iowa plant
June 5, 2009 (FinancialWire) -- Nortech Systems Inc. (NASDAQ: NSYS) (Current Market Cap: US$7.69 Mil.) said it will close its electronics manufacturing services facility in Garner, Iowa, by early August 2009. The closure will impact 57 hourly and salaried employees.
The company purchased the Garner facility from Suntron in February 2007. Nortech's other manufacturing operations are located in Baxter, Bemidji, Blue Earth, Fairmont and Merrifield, Minnesota, Augusta, Wisconsin and Monterrey, Mexico.
Company CEO Mike Degen called the move "a very difficult decision... but a necessary decision aimed at maximizing our efficiency and reducing expenses."
Degen said that the three primary market segments served by Nortech Systems, aerospace/defense, medical and industrial, all have been impacted by deteriorating macroeconomic conditions. The customer base served by the Garner facility was heavily weighted with industrial customers, the segment where Nortech is seeing the weakest demand.
Nortech will consolidate its EMS operations at its facility in Merrifield, Minn.
Wayzata, Minnesota-based Nortech Systems is an electronics manufacturing services provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a range of industries.
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