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Pemstar Cutbacks Include Shedding 190,000 SF

ROCHESTER, MN-Weakening sales lead the electronics manufacturing firm add to its cutbacks. The company will sublease its original plant in Rochester and some space in Chaska, Rochester and other locations as well as shut down plants in Massachusetts and Brazil.

By Jim McCartney | Updated on January 13, 2005

ROCHESTER, MN-Pemstar, an electronics manufacturing services company, says it has ramped up its cutbacks, and now plans to shed 190,000 sf in manufacturing space as part of a restructuring program to eliminate about $10 million in annual costs. The reduction represents about one-fifth of its manufacturing space in North American and South America, the company says.

Pemstar’s three Midwest sites will be integrated into one virtual operational entity with shared general management and support services, the company says. Management wouldn’t spell out how the restructuring would affect Minnesota except to say that the consolidation includes integrating Pemstar sites in Rochester, Chaska and Duneith, ND, as well as a plant in San Jose. The company plans to sublease a 60,000-sf plant in Rochester.

“The Rochester plant was our original manufacturing plant when we were incorporated in 1994,” says Shayn Carlson, executive director of finance. Carlson adds the plant, which has been idle for about a year, was recently sold to a new owner, whose identity was unavailable.

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