DES PLAINES, Ill. (AP) — Fuse maker Littelfuse Inc. said Wednesday it plans to move its semiconductor assembly and test operation from Matamoros, Mexico, to China over a two-year period.
The Matamoros facility will be closed once the transfer is finished, affecting about 950 employees, Littelfuse said. The move is expected to save about $7.4 million each year once the transition is complete, Littelfuse said.
Littelfuse said it expects to record pretax restructuring and transition charges of about $6.3 million, with about $5 million to be recorded in the first quarter of 2008.
Manufacturing operations will be consolidated at Littelfuse's existing assembly and test facility in China and subcontractors in the country.
When the transfer is completed, semiconductor assembly and test operations will be in the same location as the company's new wafer fabrication operation, which is scheduled to begin production in the first quarter of 2009.
Littelfuse acquired the Matamoros operation in 2003 through its purchase of Teccor Electronics Corp.
Littelfuse shares fell 26 cents to close at $30.45.