SAN JOSE -- Adeptron Technologies will close its plant here effective Jan. 31 and shift a portion of the production to their facilities in Markham and Ottawa, Ontario, Canada.

The electronics manufacturing services company will take a $200,000 charge in the first quarter for restructuring and related activities. It did not disclose the estimated cost savings from closing the site.

The San Jose plant currently employs 27 workers, some of whom will be offered employment with other Adeptron partners.

In a statement, interim chief executive Trent Carruthers said, "Making the determination to close our US manufacturing plant in order to remain competitive was very difficult, though necessary. The continued restructuring of the Company and planned reductions will increase manufacturing efficiencies and lower costs by more effectively using resources and technology, improving plant processes, eliminating excess capacity, and better aligning production with market demand."

The company said fourth-quarter sales exceeded management's expectations and are estimated to be approximately $12 million. Overall sales for 2010 should surpass $47 million, up from $43.5 million in 2009. The EMS firm anticipates first-quarter earnings to be slightly lower than originally expected due to these restructuring charges and other expenses associated with the plant closing.

• Prev
• Next