Key Tronic Corporation Executes New Lease to Expand Domestic Operations In Arkansas
SPOKANE VALLEY, Wash., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation, a provider of electronic manufacturing services (EMS), is expanding its clean-tech manufacturing operations in Arkansas, establishing its flagship manufacturing and research and development location in Springdale. The company anticipates investing more than $28 million in the new facility and expects to create over 400 new jobs in the next five years.
"We are pleased to announce the expansion of our U.S. manufacturing operations in Northwest Arkansas. Our new center of excellence in Springdale will provide both our employees and customers with cutting-edge technology and the increased capacity necessary to accommodate expected growth," said Brett Larsen, CEO of Key Tronic. "We are committed to continuously investing in our capabilities and attracting innovative talent. Our people are our most valuable asset, and we are delighted to enhance our operations in a region where we have maintained a longstanding presence and a strong team and can benefit from a business-friendly environment."
"When we invest in education and our workforce, we can attract companies like Key Tronic and ensure they have the skilled workforce they need. Arkansas LEARNS and ACCESS are laser-focused on that issue and help attract announcements like this one, which mean $28 million and nearly 400 jobs for Springdale," said Governor Sanders.
Key Tronic will be shifting its existing Arkansas operations to a new larger facility in Springdale, located at 601 W Apple Blossom Avenue later in 2025, increasing its total U.S. production capacity by approximately 40 percent.
"Crossland purchased the land in 2021 with a vision to build a modern, best-in-class facility, and we are grateful that Key Tronic has chosen this location to call home. This building is part of a larger business park, representing an investment of over $100 million in the Springdale community," said Director of Real Estate Mattie Crossland. "Our goal is to provide spaces that allow our tenants to run their businesses efficiently while also contributing to the growth and future of the community."
Crossland Realty Group developed the 300,000-square-foot building shell in late 2023, with Crossland Construction completing Key Tronic's tenant improvements, slated for completion in Q3 2025.
"Key Tronic has a long history of manufacturing electronics in Arkansas, and we are proud that the company has decided to expand their presence and increase production capacity in our state," said Clint O'Neal, Executive Director of the Arkansas Economic Development Commission. "Congratulations to the Key Tronic team and to the City of Springdale on this major economic development win."
"Key Tronic's decision to relocate to Springdale is a strong endorsement of our city's talented workforce, thriving economy, and commitment to fostering business success," said Springdale Mayor Doug Sprouse. "This investment brings significant job opportunities to our community, further strengthening Springdale's reputation as a prime destination for industry and innovation. We proudly welcome Key Tronic and look forward to their future growth here."
"This exciting announcement would not have been possible without the leadership of Governor Sanders and the unwavering support of the Arkansas Economic Development Commission," said Bill Rogers, president and CEO of the Springdale Chamber of Commerce. "Thanks to our regional partners and the proactive efforts of Mayor Sprouse's administration, we were able to roll out the red carpet for Key Tronic. We are thrilled to welcome them to Springdale and look forward to supporting their success in our community."
"Key Tronic's reinvestment in Northwest Arkansas highlights our region's strong workforce and pro-growth environment," said Nelson Peacock, president and CEO of the Northwest Arkansas Council. "As a leader in electronics manufacturing, their expansion strengthens our economy, retains quality jobs and creates new opportunities—reinforcing our position as a top destination for business and innovation."
About Key Tronic
Founded in 1969, Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world's leading original equipment manufacturers. Key Tronic has operated in Arkansas since 1985.
For more information about Key Tronic visit: www.keytronic.com.
About Crossland Construction Company
Crossland is a top-ranked construction firm offering a wide range of services through its family of companies. Crossland Construction provides general contracting, construction management, and much more. Crossland Realty, a division of Crossland Construction, offers complete real estate services, guiding clients through location scouting, planning, development, construction, and leasing. Crossland is dedicated to Building So Much More for its clients and the communities they serve. Learn more: www.crossland.com
About the Arkansas Economic Development Commission
At AEDC, we know economic advancement doesn't happen by accident. We work strategically with businesses and communities to create strong economic opportunities, making Arkansas the natural choice for success. AEDC is a division of the Arkansas Department of Commerce. To learn more, visit ArkansasEDC.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Key Tronic's opportunities and its partnership, the potential success of Key Tronic and the customer, and related revenues. Forward-looking statements include all passages containing verbs such as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or revenue or that can only be fully evaluated by events that will occur in the future. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the success and timing of our expansion plans; the success and timing of ramping; availability and timing and receipt of critical parts or components; demand from customers and sales channels; the future of the global economic environment and its impact on our customers and suppliers; the availability of a healthy workforce; the accuracy of suppliers' and customers' forecasts; development and success of customers' programs and products; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company's Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company's SEC filings.
FOR IMMEDIATE RELEASE
| CONTACTS: | Anthony G. Voorhees | Michael Newman | ||
| Chief Financial Officer | Investor Relations | |||
| Key Tronic Corporation | StreetConnect | |||
| (509) 927-5345 | (206) 729-3625 |
