MELVILLE, N.Y. (AP) -- Park Electrochemical Corp. said Monday that it plans to close a digital electronics materials unit based in France, saying the European market for its products has eroded significantly.
Park has proposed closing its Neltec Europe SAS division, which is based in Mirebeau, France, and restructure its Neltec SA RF/microwave electronics materials unit based in Lannemezan, France. The company said it has begun the process of consulting with its employees about the changes, a requirement under French law. Park did not say how many employees would be affected.
Park said the moves come following a "very serious erosion" of the European markets for digital electronics materials and a shift in the market to Asia. The company said it believes that Neltec Europe SAS can no longer be viable in such an environment.
If the restructuring plan goes through, Park will record a one-time pretax charge of between $5 million and $6 million in the third or fourth quarter of the current fiscal year, which ends March 1. Neltec Europe SAS would be treated as a discontinued operation if the closure takes place.
Park said it would still supply existing customers of Neltec Europe SAS from its operations located in the United States.
Last week, Park announced an unspecified number of job cuts at a California subsidiary that makes electronics materials. The company said it would take a $100,000 fiscal third-quarter charge due to the staff reductions.
Shares of Park lost 39 cents to $27.96 in morning trading. The company's shares have ranged between $21.11 and $37.17 over the past 52 weeks.