Neltec Europe SAS — Park Electrochemical Corp.’s electronic materials business unit located in Mirebeau, France — is proposing to restructure its operations and to reduce its workforce. As a first stage the company has commenced an information and consultation process with its employees, in accordance with French law. The move is in response to the continuing erosion of the markets for electronic materials in Europe and the continuing migration of such markets to Asia.
If the proposals are implemented, the company expects to record a one-time charge of approximately $1.5 M in the fourth quarter of its current fiscal year, ending March 2, 2008. It is also expected that Neltec Europe SAS will continue to support all of its existing customers. The proposed restructuring plan does not contemplate the loss of any business by Neltec Europe SAS and will not affect Park’s Neltec SA business unit located in Lannemezan, France.
The European facilities will remain key to Park, which is a global advanced materials company that develops and manufactures high-technology digital and RF/microwave printed circuit materials and advanced composite materials, principally for the telecommunications and internet infrastructure, high-end computing and aerospace markets. The company has also announced plans to construct a new facility in Newton, KS to complement its existing manufacturing facilities in Singapore, China, France, Connecticut, New York, Arizona and California.