Key Tronic Corporation Executes New Lease to Expand Domestic Operations In Arkansas
Key Tronic (KTCC) announced the expansion of its clean-tech manufacturing operations in Arkansas, with plans to establish a flagship manufacturing and R&D facility in Springdale. The company will invest over $28 million in the new facility and expects to create more than 400 new jobs over the next five years.
The company will relocate its existing Arkansas operations to a new 300,000-square-foot facility at 601 W Apple Blossom Avenue in Springdale later in 2025. This move is expected to increase KTCC's total U.S. production capacity by approximately 40 percent. The facility, developed by Crossland Realty Group in late 2023, will have tenant improvements completed by Crossland Construction in Q3 2025.
Key Tronic (KTCC) ha annunciato l'espansione delle sue operazioni di produzione clean-tech in Arkansas, con piani per stabilire un impianto di produzione e ricerca e sviluppo di punta a Springdale. L'azienda investirà oltre 28 milioni di dollari nella nuova struttura e prevede di creare più di 400 nuovi posti di lavoro nei prossimi cinque anni.
L'azienda trasferirà le sue attuali operazioni in Arkansas in una nuova struttura di 300.000 piedi quadrati al 601 W Apple Blossom Avenue a Springdale entro la fine del 2025. Questo spostamento dovrebbe aumentare la capacità produttiva totale di KTCC negli Stati Uniti di circa 40 percento. La struttura, sviluppata da Crossland Realty Group alla fine del 2023, avrà miglioramenti per i locatari completati da Crossland Construction nel terzo trimestre del 2025.
Key Tronic (KTCC) anunció la expansión de sus operaciones de fabricación de tecnología limpia en Arkansas, con planes de establecer una instalación de fabricación e I+D insignia en Springdale. La empresa invertirá más de 28 millones de dólares en la nueva instalación y espera crear más de 400 nuevos empleos en los próximos cinco años.
La empresa trasladará sus operaciones existentes en Arkansas a una nueva instalación de 300,000 pies cuadrados en 601 W Apple Blossom Avenue en Springdale a finales de 2025. Este movimiento se espera que aumente la capacidad de producción total de KTCC en EE.UU. en aproximadamente 40 por ciento. La instalación, desarrollada por Crossland Realty Group a finales de 2023, tendrá mejoras para inquilinos completadas por Crossland Construction en el tercer trimestre de 2025.
Key Tronic (KTCC)는 아칸소에서 클린 테크 제조 운영을 확장한다고 발표했으며, 스프링데일에 플래그십 제조 및 연구 개발 시설을 설립할 계획입니다. 이 회사는 새로운 시설에 2800만 달러 이상을 투자할 예정이며, 향후 5년 동안 400개 이상의 신규 일자리를 창출할 것으로 기대하고 있습니다.
회사는 2025년 말까지 스프링데일의 601 W Apple Blossom Avenue에 있는 30만 평방피트 규모의 새로운 시설로 기존 아칸소 운영을 이전할 예정입니다. 이 이전을 통해 KTCC의 미국 내 총 생산 능력이 약 40퍼센트 증가할 것으로 예상됩니다. 이 시설은 2023년 말에 Crossland Realty Group에 의해 개발되었으며, 2025년 3분기에 Crossland Construction에 의해 세입자 개선 작업이 완료될 것입니다.
Key Tronic (KTCC) a annoncé l'expansion de ses opérations de fabrication de technologie propre en Arkansas, avec des projets pour établir une installation phare de fabrication et de R&D à Springdale. L'entreprise investira plus de 28 millions de dollars dans la nouvelle installation et s'attend à créer plus de 400 nouveaux emplois au cours des cinq prochaines années.
L'entreprise déplacera ses opérations existantes en Arkansas vers une nouvelle installation de 300 000 pieds carrés au 601 W Apple Blossom Avenue à Springdale d'ici la fin de 2025. Ce déménagement devrait augmenter la capacité de production totale de KTCC aux États-Unis d'environ 40 pour cent. L'installation, développée par Crossland Realty Group à la fin de 2023, aura des améliorations pour les locataires achevées par Crossland Construction au troisième trimestre de 2025.
Key Tronic (KTCC) gab die Erweiterung seiner Clean-Tech-Fertigung in Arkansas bekannt und plant die Errichtung einer Flagship-Fertigungs- und F&E-Anlage in Springdale. Das Unternehmen wird über 28 Millionen Dollar in die neue Anlage investieren und erwartet, in den nächsten fünf Jahren mehr als 400 neue Arbeitsplätze zu schaffen.
Das Unternehmen wird seine bestehenden Arkansas-Betriebe bis Ende 2025 in eine neue 300.000 Quadratfuß große Anlage in der 601 W Apple Blossom Avenue in Springdale verlagern. Dieser Schritt wird voraussichtlich die gesamte Produktionskapazität von KTCC in den USA um etwa 40 Prozent erhöhen. Die Anlage, die Ende 2023 von Crossland Realty Group entwickelt wurde, wird im dritten Quartal 2025 mit Verbesserungen für Mieter von Crossland Construction fertiggestellt.
- Investment of $28 million in new manufacturing facility
- Creation of 400 new jobs over next 5 years
- 40% increase in total U.S. production capacity
- Expansion to larger 300,000-square-foot facility
- None.
Insights
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- It positions Key Tronic to capitalize on the growing trend of nearshoring and reshoring of electronics manufacturing, especially in clean-tech sectors
- The modern facility's specifications suggest automated manufacturing capabilities that could significantly improve operational efficiency and margins
- The expansion creates a strategic buffer against global supply chain disruptions while reducing transportation costs and lead times for North American customers
The selection of Arkansas, with its business-friendly environment and established workforce, provides Key Tronic with significant competitive advantages. The state's support through programs like Arkansas LEARNS and ACCESS helps ensure a steady pipeline of skilled workers—crucial for maintaining quality standards in electronics manufacturing. The facility's location in a larger business park could facilitate future expansion opportunities and create valuable synergies with nearby businesses.
From an operational perspective, consolidating existing Arkansas operations into this new facility should drive economies of scale and streamline logistics. The timing of this expansion, scheduled for completion in Q3 2025, suggests Key Tronic is positioning itself to meet anticipated growth in domestic electronics manufacturing demand, particularly in clean-tech sectors where quality control and intellectual property protection are paramount.
Key Tronic Corporation Expands Manufacturing 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
“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
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
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 |
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