NEENAH, WI, November 4, 2015 - Plexus Corp. (NASDAQ: PLXS) today announced its intention to close its Fremont, CA manufacturing facility. Closure of the 46,000 sq. ft. facility is expected to result in the separation of approximately 200 employees.
Dean Foate, Chairman, President and Chief Executive Officer, commented, "Deciding to close a facility is never an easy decision and we are sensitive to the impact this has on our employees, their families and the community. The dedication of our employees at the Fremont site has contributed to many successful customer partnerships; however, changing end-market dynamics necessitate that we optimize our capacity to meet customer demand. We have evaluated the value proposition and long-term viability of each of our manufacturing locations and have determined that the future growth prospects of our Fremont facility were limited."
Patrick Jermain, Senior Vice President and Chief Financial Officer, commented, "While this is a difficult decision, we believe that proactively aligning our footprint to meet the future needs of our customers is necessary to best serve the long-term interests of Plexus and our shareholders. We anticipate restructuring charges related to this action of approximately $3 to $5 million beginning in the fiscal first quarter of 2016. It is our intention to move the customer programs to other Plexus sites and complete the transition by the end of our fiscal third quarter. Once fully implemented, these actions are expected to generate approximately $7.0 million dollars in annual savings."
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About Plexus Corp. – The Product Realization Company
Plexus (www.plexus.com) delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer-focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining services to deliver comprehensive end-to-end solutions for customers in the America, European and Asia-Pacific regions.
Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 140 branded product companies in the Networking/Communications, Healthcare/Life Sciences, Industrial/Commercial and Defense/Security/Aerospace market sectors.