OLATHE, KS -- Suntron Corp. will close its contract manufacturing business unit here and transfer the business to other company sites, laying off 190 employees in the process, the EMS firm said in an SEC filing yesterday.

The relocation will be "substantially completed" by December.



The company will take a nominal charge for ending its lease on the 60,000 sq. ft. facility, which expires May 31, 2007. Other charges expected include retention costs of up to $500,000, and severance costs of up to $400,000,
and equipment and inventory relocation charges of up to $900,000.

Employees were notified on Sept. 7 of the plant closing.

Last year Suntron lost Applied Materials as a major customer and has been working to make up the business since.