Park Electrochemical Announces a Major Expansion of Its Nelco Singapore Facilities
Park Electrochemical Corp. (NYSE-PKE) announced that its Board of Directors has approved a major expansion of the manufacturing facility of its Nelco Singapore business unit. The expansion will involve total capital spending of approximately US$25 million over approximately the next eighteen months. The company plans to fund this expansion through currently available cash. The company’s Nelco Singapore facility currently has manufacturing capacity of approximately US$120 million per year. When completed, the expansion program is expected to increase the annual manufacturing capacity of the Nelco Singapore facility to approximately US$200 million. This expansion will incorporate the new manufacturing technology the company has recently developed with its equipment suppliers in the area of next-generation treating, automated set-up, automated lay-up, vacuum pressing and automated finishing. These new manufacturing technologies are designed to improve cycle times, product quality, product technology, manufacturing yields and efficiencies and productivity and to reduce manufacturing costs.
Brian Shore, Park’s President and CEO, said, “We are all very excited about our new Nelco Singapore expansion program, as it will enable us to continue to aggressively expand our Asian advanced circuitry materials business and to better serve our customers in Asia. These investments signify our continuing commitment to tomorrow’s manufacturing technologies and to our long-term strategy of working closely with our customers in their geographic regions to help them be more successful. Notwithstanding the current global electronics manufacturing industry correction and downturn, we are still very optimistic about the long-term future of the global electronics industry (especially in Asia) and we certainly are optimistic about our company and our business over the long haul. The expansion of our Nelco Singapore manufacturing facility is also designed to complement our recently announced plan to establish a business center in Wuxi, China. This expanded and enhanced capacity at our Nelco Singapore business unit will facilitate our Company’s ability to better serve our customers throughout Asia.”
Other news from the department
