Sheldahl Inc. is Closing South Dakota Facility

Electronic News, April 30, 2001

SHELDAHL INC., A PRODUCER OF HIGH-DENSITY substrates, flexible printed circuitry and flexible laminates primarily for sale to the automotive electronics and data communications markets, will conclude operations in its Britton, S.D., assembly facility by the end of this year. The Britton facility, which currently employs approximately 55 workers, specializes in electronic assemblies for use in the automotive and computing industries. "The current economic environment has resulted in less demand for the assemblies produced in Britton. Consequently, the plant is underutilized, operating at less than half of its capacity. After a careful review of business conditions, we do not expect demand to increase in the foreseeable future, which requires we take this action," said Donald Friedman, president and chief executive officer of Northfield, Minn.-based Sheldahl (nasdaq: SHEL).

The company said it has initiated a ramp-down schedule, which is expected to be complete by year's end. Sheldahl said that there would be no interruption of customer service during the ramp-down period. It is giving at least 60 days notice to all affected employees and providing severance packages and outplacement services.