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Plexus Announces Expansion in Oradea, Romania

February 12, 2009

NEENAH, Wis., Feb. 12 /PRNewswire-FirstCall/ — Plexus Corp. (Nasdaq: PLXS) announced today that it intends to begin operations in Oradea, Romania and has entered into an agreement to lease an approximately 72,000 sq. ft. facility. This new facility establishes the first phase of Plexus’ lower cost European manufacturing strategy, which will provide customers with a balanced regional solution. Coupled with the current Kelso, Scotland manufacturing facility and design services capabilities in Livingston, Scotland, this new location will further Plexus’ ability to deliver a lowest total-cost value proposition to the broader European region. Production in Oradea is expected to begin in the second half of fiscal 2009.

Todd Kelsey, Sr. VP Global Customer Services, commented, “Our customers believe that the mid-to low-volume, higher-mix segment of the EMS industry is underserved in Europe, creating an opportunity for us to expand our regional footprint and exploit the growing demand for our services in the region. We believe that the Oradea facility will provide our global customers with a lower total-cost European solution, particularly for products with European end-markets. In addition, we believe it will enable us to partner with European-based OEMs seeking a global EMS solution that provides flexibility, agility and world-class execution.”

Mike Buseman, Sr. VP Global Manufacturing Operations, further commented, “Oradea is ideally located to utilize the infrastructure of Central Europe, providing local supply chain and sourcing solutions that can be leveraged throughout the region. In addition, Oradea’s location on the Hungarian/Romanian border is logistically attractive, while still providing the advantage of significant labor cost savings. Oradea offers a skilled labor pool, as well as universities in the surrounding area that offer curriculum focused on electronics manufacturing. We believe that this European solution will give us the opportunity to leverage our Kelso facility for new product introductions and create a regional footprint that continues to deliver the best value proposition for our customers.”

About Plexus Corp. – The Product Realization Company

Plexus (www.plexus.com) is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.

The Company’s unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality.

Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia.

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, including, but not limited to: risks associated with establishing operations in a geographical area where we do not operate; the effect of start-up costs of new programs and facilities, including our recent expansions and planned expansions in Oradea, Romania; the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders, particularly in view of current economic conditions; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers and maintain our current customer base and deliver product on a timely basis; the risks relative to a new confidential customer in the Industrial/Commercial sector, including customer delays, start-up costs, our potential inability to execute and lack of a track record of order volume and timing; the risks of concentration of work for certain customers; the increasing weakness of the global economy and the continuing instability of the global financial markets and banking system, including the potential inability of us or our customers or suppliers to access cash investments and credit facilities; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the adequacy of restructuring and similar charges as compared to actual expenses, including the announced closure of our Ayer, MA facility and workforce reductions at our Juarez, Mexico facility; the degree of success and the costs of efforts to improve the financial performance of our Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; the potential effect of world and local events (such as changes in oil prices, terrorism, drug cartel-related violence in Juarez, Mexico, 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 II, Item 1A of our quarterly report on Form 10-Q for the quarter ended January 3, 2009).

SOURCE Plexus Corp.


Source: newswire



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