NEENAH, Wis., Dec. 9, 2010 (GLOBE NEWSWIRE) -- Plexus Corp. (Nasdaq:PLXS) announced today that it has entered into an agreement to purchase land for the construction of a new manufacturing facility in the Xiamen Xiangyu Free Trade Zone, adjacent to its current facility. This new facility will operate under the existing management team and will add approximately 180,000 square feet of manufacturing capacity. Construction is expected to begin in March 2011 with production to commence in the second half of calendar 2012. In addition, Plexus' current Xiamen, China manufacturing facility has received State Food and Drug Administration, P.R. China (SFDA) certification to support customers in the Medical industries. This certification allows Plexus to manufacture finished Class I and II medical devices for our customers that sell into China end-markets.
Mr. YJ Lim, Regional President-Plexus Asia Pacific, commented, "This facility investment is the result of strong organic growth for Plexus in the Asia Pacific region and continues our strategy of investing in close proximity to current locations to leverage our strong operations teams. With the support of our local supply chain partners, our manufacturing capabilities offer a significant advantage for companies that are seeking mid-to-low volume, higher complexity Product Realization Value Stream Solutions in China."
Mr. Lim continued, "The SFDA certification in our Xiamen facility will allow us to further enhance our Medical service offerings to global customers seeking end-market fulfillment of medical products into China. We are excited about the opportunity this provides for us to expand our reach in the People's Republic of China, a growing medical device market."
The expanded Xiamen facility will continue to focus on the Medical, Industrial/Commercial and Wireline/Networking market sectors. Most recently the Plexus Xiamen facility was awarded the Xiamen Top 100 Enterprise and Top 10 Return on Capital Employed Enterprise by Xiamen Enterprise Association.
About Plexus Corp. – The Product Realization Company
Plexus () delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment, and sustaining services to deliver comprehensive end-to-end solutions for customers in the North American, European and Asia-Pacific regions.
Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 100 branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.
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Safe Harbor and Fair Disclosure Statement
The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including "believe," "expect," "intend," "plan," "anticipate," "goal," "target" and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, but are not limited to: the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the poor visibility of future orders, particularly in view of current economic conditions; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the risk that our revenue and/or profits associated with customers who are acquired by third parties will be negatively affected; the particular risks relative to new customers, including our arrangements with The Coca-Cola Company, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack of a track record of order volume and timing; the risks of concentration of work for certain customers; our ability to manage successfully a complex business model characterized by high customer and product mix, low volumes and demanding quality, regulatory, and other requirements; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the fact that customer orders may not lead to long-term relationships; the effects of the current constrained supply environment, which has led and may continue to lead to periods of shortages and delays in obtaining components based on the lack of capacity at some of our suppliers to meet increased demand, or which may cause customers to increase forecasts and orders to secure raw material supply or result in our inability to secure raw materials required to complete product assemblies; raw materials and component cost fluctuations particularly due to sudden increases in customer demand; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by customer resulting in an inventory write-off; the weakness of the global economy and the continuing instability of the global financial markets and banking system, including the potential inability of our customers or suppliers to access credit facilities; the effect of changes in the pricing and margins of products; the effect of start-up costs of new programs and facilities, including our recent and planned expansions, such as our new replacement facility in Oradea, Romania, and our plans to further expand in Penang, Malaysia and other locations; the risk of unanticipated costs, unpaid duties and penalties related to an ongoing audit of our import compliance by U.S. Customs and Border Protection; possible unexpected costs and operating disruption in transitioning programs; the potential effect of world or local events or other events outside our control (such as drug cartel-related violence in Mexico, changes in oil prices, terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company's Securities and Exchange Commission filings (particularly in Part I, Item 1A of our annual report on Form 10-K for the fiscal year ended October 3, 2009).
CONTACT: Plexus Corp. Kristine Rhode, Corporate Communications Specialist 920-720-6749 firstname.lastname@example.org