Plant Closure

12 Months Ended

Dec. 31, 2016

Plant Closure

Plant Closure

NOTE 9 — Plant Closure

On August 1, 2016 the Company announced plans to close its manufacturing operations in Augusta, Wisconsin, by the end of 2016.  In January 2017, production ceased and on February 7, 2017, the building was put up for sale and reclassed to held for sale. 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 are affected. At December 31, 2016, the Company had property and equipment with net book value of $392,000 at the Augusta facility, consisting of building and improvements of $312,000 and equipment of $80,000.