PLANT CLOSURE

9 Months Ended

Sep. 30, 2016

PLANT CLOSURE

PLANT CLOSURE

NOTE 7.  PLANT CLOSURE

On August 1, 2016 the Company announced plans to close its manufacturing operations in Augusta, Wisconsin, by the end of 2016. Nortech has operated a facility in Augusta since 1992, serving mainly an industrial customer base and defense overflow production that aligned with their custom cable capabilities. Nortech will consolidate operations at its other facilities, continuing to serve customers without interruption. This consolidation will increase Nortech’s overall asset utilization and cost leveraging. Approximately 50 employees at the Augusta facility will be affected. At September 30, 2016, we accrued $55,000 as a result of the planned closing. The Company has property and equipment with net book value of $415,000 at the Augusta facility, consisting of building and improvements of $318,000 and equipment of $97,000 at September 30, 2016. The Company intends to relocate the equipment to other facilities and sell the building.