May 4, 2005 – Minnesota-based Entegris announced yesterday that it will realign some of its production and administrative activities. Entegris officials expect the moves will produce an annual operating cost savings of more than $1 million and are expected to have a minimal impact on staffing levels.
All production and administrative operations currently in one of the company’s four Chaska, MN, facilities (Building #1) will be consolidated into the other three buildings, resulting in some production activity being shifted to manufacturing plants in Colorado Springs, CO, and Malaysia.
The moves should be completed by the end of the calendar year. Out-of-pocket expenses for completing the realignment are projected to be from $2.5-$3 million, with up to $3 million in asset write-offs, the majority of which are expected to incur in the fiscal 4Q05.
Ultimately, the moves will make it possible for Entegris to expand production of its 300mm wafer carriers in Chaska. In addition, by more fully utilizing its three remaining Chaska facilities, they expect to lease or sell the fourth building that will no longer be in use after the realignment is completed.
The planning of the realignment began several months ago and along with its implementation, is not connected in any way with the company’s recently announced merger agreement with Mykrolis.