August 1, 2012 -- Park Electrochemical Corp. (NYSE-PKE) plans to cease operations at its Nelco Technology (Zhuhai FTZ) Ltd. facility in Zhuhai, China, and liquidate, subject to the requisite approvals of government authorities in China. Nelco products include microwave and RF component substrates, printed circuit materials, and advanced substrates such as BT.
Bismaleimide triazine (BT) substrates are widely used for IC packaging. Park will support all its customers in Asia from its Nelco Products Pte. Ltd. business unit in Singapore now, with manufacturing activities from Zhuhai moving to Singapore. The proposed cessation of operations does not contemplate the loss of any business by Park.
As the result of the cessation of operations at Nelco Technology (Zhuhai FTZ) Ltd., Park expects to record total pre-tax charges of approximately $3.2 million. The charges include non-cash charges of approximately $2.4 million and cash charges of approximately $0.8 million. The Company is recording approximately $2.6 million of these charges in the 2013 fiscal year second quarter ending August 26, 2012 and expects to record the balance of the charges during the remaining two quarters of the current fiscal year ending March 3, 2013 and the first quarter of the 2014 fiscal year. The Nelco Technology (Zhuhai FTZ) Ltd. business operations will have no further impact on the consolidated financial condition or results of operations of Park Electrochemical Corp. after the cessation of operations.
Park Electrochemical Corp. is a global advanced materials company that develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets. The company also supplies advanced composite materials, parts and assemblies for the aerospace markets. Learn more at http://www.parkelectro.com/.