JACKSON, MI -- Sparton Corp. will close its Jackson, MI, manufacturing operations by than June 30, hoping a reduction in excess capacity will help restore the EMS company to profitability. The move will put 206 employees out of work.

Sparton will take estimated charges related to the closing of approximately $3.8 million to $4.8 million, about $3 million of which will be cash, most in its fiscal fourth quarter.

Products currently manufactured in Jackson will be moved to company facilities in Brooksville, FL, and Ho Chi Minh City, Vietnam. Customer orders will not be affected by the transfer to other facilities, Sparton said in a statement.

"While this decision was extremely difficult, it is critical for us to take the steps necessary to ensure the long-term viability of the company,” said Cary Wood, CEO. “We have been faced with excess capacity for some time now and we need to optimize our manufacturing resources to a much more competitive level.”

The Jackson site has served as the company’s headquarters. The company did not disclose whether those operations would move.

The closing affects 39 salaried and 167 hourly employees, Sparton said. The company will assist the displaced workers with training and outplacement services.

It its the second time in nine months the company closed a US facility. Last fall, it shuttered its Albuquerque, NM, site.

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