Park Electrochemical to restructure European business

THe company has commenced an information and consultation process with its employees regarding the proposed closure in accordance with French law. Although Park intends to continue fully the operations of its Neltec RF/microwave electronic materials business unit located in Lannemezan, France, the proposed European restructuring does include a reorganization of certain of the activities of Neltec. Neltec Europe is proposing to close fully its operations in response to the very serious erosion of the markets for digital electronic materials in Europe and the migration of such markets to Asia. The market for such products in Europe has eroded to the point where Park believes is not possible for the Neltec Europe business to be viable. If the closure of the Neltec Europe operations is implemented as proposed, Park would plan to supply and fully support all existing customers of Neltec Europe from Park’s electronic materials operations located in the United States. The proposed reorganization of certain of the activities of Neltec is not expected to affect Neltec’s service or ability to support its customers around the world. At this time, the proposed restructuring plans do not contemplate the loss of material amounts of business by Park. In light of the proposed closure of the operations of Neltec Europe, Ronald Brett has resumed his role as President of Neltec Europe and Manuel Gonzalez has resumed his role as Manufacturing Director of Neltec Europe.