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© gualtiero-boffi-dreamstime.com Electronics Production | October 18, 2013

Orbit to consolidate Quakertown facility into Hauppauge operation

Orbit International will consolidate the operations of its Quakertown, PA-based Tulip Development Laboratory ("TDL") subsidiary, which is part of its Electronics Group, into its Hauppauge, NY facility.
The Quakertown facility manufactures a range of displays and hand-held devices for military, industrial and commercial applications.

Beginning in the first quarter of 2014, all production, engineering and administrative functions currently performed at TDL's facility in Quakertown will be transitioned into Orbit's 60'000 square foot facility in Hauppauge. Consolidation should be completed before June 30, 2014.

Mitchell Binder, President and CEO of Orbit, commented, "We were driven to this decision by a number of factors, among them, a difficult business environment due to budgeting concerns in Washington, our broader focus on promoting operating efficiencies, and TDL's expiring lease. This consolidation is expected to reduce excess capacity at our Hauppauge facility, provide the advantage of greater manufacturing capabilities offered by our ISO 9001:2008 operations, reduce labor and overhead costs, and boost margins, all while maintaining the world-class level of service that our customers have come to expect."

Mr. Binder added, "After consolidation of these two facilities, our Hauppauge facility will have sufficient capacity to support future growth without any significant facility investment."

David Gutman, President of TDL, stated, "Our customers should expect a seamless transition to the Hauppauge facility. We will continue to fulfill all orders under the TDL name and market our broad array of products under this brand. I am confident that this move will make us a stronger company and well positioned for future growth."

The Company expects to incur approximately USD 400,000 in expenses and charges, inclusive of approximately USD 300,000 of accelerated non-cash amortisation expense on its leasehold improvements, in connection with this consolidation. Following the transition, the Company expects to realise annualized savings of approximately USD 2 million.

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