Melville-based Park Electrochemical Corp. will cease most manufacturing operations at its Nelco Products Inc. unit in Fullerton, California.
Park, which makes printed circuit materials used in telecommunications infrastructure and composite materials used in aerospace, will transfer most operations of the Fullerton plant to its Neltec Inc. unit in Tempe, Arizona, over four to six months, the company said Tuesday in a news release.
The company did not specify how many jobs would be lost in the shake-up, but invited Nelco employees to apply for relocation to the Arizona facility. Park said it expects to save about $3 million to $3.5 million per year from the consolidation.
Brian Shore, Park Electrochemical Corp.’s chairman and CEO, said in a telephone interview that the company’s total head count is about 450 worldwide, with about 175 combined in Fullerton and Tempe.
“I don’t think the total, at the end of the day, will change that much,” he said.
The Fullerton facility, last expanded in 2000, was designed for high volume production of materials for the electronics market, which migrated from North America to Asia, he said.
Shore said the Arizona facility is better suited to current demand for printed circuit board materials in North America, where customers are seeking short production runs on specialized projects.
On Tuesday, Park shares gained 18 cents to close at $16.60 on the New York Stock Exchange. On Wednesday, shares continued to rally, climbing 48 cents to $17.08.