ELKHART, IN -- CTS will take up to $20 million in restructuring charges as part of its latest manufacturing consolidation.

The contract printed circuit board assembler will close plants in Singapore and Glasgow, and is evaluating other options as well, the company said today.

"With fewer manufacturing facilities, this plan still allows the company sufficient capacity to grow," CTS said. "This process has already started in Singapore and the company has entered into a period of consultation with employees at its operation located in Glasgow, Scotland. Additional optimizations are being evaluated along with the implementation of a leaner corporate cost structure."

The plant in Singapore is current the company's largest, at 159,000 sq. ft. The Glasgow site is 37,000 sq. ft., and dates to 1966, according to the CIRCUITS ASSEMBLY Directory of EMS Companies. CTS had referred to the Scotland EMS operations as unprofitable during its fourth quarter conference call in late January.

CTS closed its EMS operations in Tianjin, China, earlier this year.

CTS will take an estimated pretax restructuring charge of $16 million to $20 million, including $10 to $15 million during 2013 and the balance in 2014. It expects to realize annual savings of $8 million to $10 million once fully implemented.

“The measures announced today are part of a larger strategic evaluation initiated by the management team earlier this year," CEO Kieran O’Sullivan said. "These initial actions will improve our manufacturing utilization, increase overall efficiency and better position the company for more profitable future growth. We understand that these are very difficult actions for affected employees and their families and we are committed to assisting all impacted individuals.”

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