CHIHUAHUA, MEXICO – SMTC will expand its electronics manufacturing services campus here and close its operations in Fresnillo, Mexico, the company said in a regulatory filing. The EMS company will take about $5.5 million in one-time charges as result of the consolidation.

SMTC, which on Jan. 4 announced a definitive agreement to be acquired by HIG Capital, said it expects to complete the first phase of the Chihuahua  expansion early in the current quarter, with subsequent phases of expansion to take place throughout 2021.

SMTC Zacatecas, located in Fresnillo, is an 80,000 sq. ft. production and box-build facility. The Chihuahua campus is spread over 17.5 acres and includes 215,000 sq. ft. of  production space including eight SMT lines, plus enclosure and precision sheet metal fabrication capabilities.

As part of the plan, the company will incur restructuring and other charges from consolidating operations from the Fresnillo facility of approximately $5.5 million, including approximately $1.5 million of non-cash accelerated asset write-downs, and $4 million of other cash-based expenses, including employee-related costs.

SMTC’s acquisition by HIG is expected to close by the second quarter, subject to approval from SMTC stockholders, antitrust clearance and other customary closing conditions.

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