Key Tronic to expand operations in Arkansas and Vietnam

This expansion is also expected to help mitigate the impact and uncertainties surrounding the recently announced tariffs on goods manufactured in China and Mexico.

In Arkansas, the company has signed a new lease to significantly increase the size of its current manufacturing footprint by June 2025. In Vietnam, Key Tronic says that it has ample space in its current facility and plans to double its manufacturing capacity by September 2025 with a significant investment in capital equipment.

“Our customers are very excited about our plans to increase our production capacity capabilities in the US and in Vietnam,” says Brett Larsen, President and CEO of Key Tronic Corporation, in a press release. “These initiatives reflect the longstanding trend to nearshore production away from China, and may also help address the potential adverse impact of tariff increases. Our US-based production provides customers with outstanding flexibility, engineering support, and ease of communications, and our Vietnam-based production offers the high-quality, low-cost choice that was associated with China in the past. In the coming months, we’ll have more to say about these expansions.”