Plexus to add 164,000 Sqf facility in Asia
Apr 15, 2004
Extends lease on building 4 in Neenah, WI through 2010
Plexus Corp. (Nasdaq: PLXS) announced that its Board of Directors had approved an expenditure of approximately $12 million to expand the Company’s operations in Penang, Malaysia. The authorization includes the purchase of an existing 164,000 square foot facility and the initial outfitting of manufacturing equipment. Additionally, the Company announced it has extended for 5 years its lease on the ‘Building 4’ facility located in Neenah, Wisconsin.
“We are growing in all geographies,” said Dean Foate, President and CEO of Plexus. “However, we are projecting to outgrow our current capacity in Asia by early fiscal 2005. This new facility will nearly double our manufacturing capacity in Asia. Additionally, we extended the lease on Building 4 in Neenah to ensure continuity of service from one of our flagship US locations.”
With the addition of the new facility, which will be Plexus’ second location in Penang, Plexus will have 1.6 million square feet of manufacturing capacity: 58% in the US, 22% in Asia, 14% in Mexico and 6% in the UK.
Mr. Foate added, “The new Malaysian facility will operate with the Plexus ‘Focus Factory’ manufacturing model and will represent our most advanced manufacturing facility in Asia. We expect to finalize the purchase of the new facility in the fiscal third quarter, and expect it to be operational in the fiscal fourth quarter. Additionally, we intend to transfer our Asian Design Center to the new building.”
Plexus has previously announced that it intends to release its fiscal 2004 second quarter results for the period ended March 31, 2004, on Wednesday, April 21st after the stock market closes.