Nortech Systems announced that its board has approved another installment of a stock repurchase program similar to the company's inaugural repurchase program that expired last month. The approved program authorizes the company to repurchase shares of its common stock in an amount up to $250,000 up through July 2019, in amounts of up to $62,500 per quarter. Under the prior repurchase program, which started in August 2017, the company spent substantially all of the $250,000 that was authorized.
Rich Wasielewski, president and CEO of Nortech Systems, announced he will be retiring. Nortech Systems' board of directors has retained an executive recruitment firm to assist in its national search to identify Wasielewski's replacement. He will continue to lead the company during the search and subsequent transition period. Wasielewski has served as Nortech's president and chief executive officer since 2014.
Nortech Systems has signed a lease for a new facility to be built in Monterrey, Mexico, approximately five miles from the company's current location. The company plans for occupation during the third quarter of 2018 with the transfer of operations expected by year-end. The Monterrey facility opened in 2001 producing wire harnesses and cable assemblies. The facility's size, employment and capabilities have steadily grown, including adding printed circuit board assemblies and higher-level electronic assemblies. He added that the new facility's advantages will include enhanced productivity, improved workflow, additional space for engineering and increased amenities for customers and employees. The new facility will almost double Nortech's current footprint while providing flexibility for future expansion.
Nortech Systems has named Connie Beck as vice president and chief financial officer. Along with directing all financial planning and accounting practices, she will oversee Nortech's relationships with its business partners, the financial community and shareholders. Beck was vice president of finance and controller for MOCON, Inc., a publicly traded provider of measurement instruments and services, from 2013 to 2017.
Nortech Systems (NSYS) announced earlier that the company and Panasonic (PCRFY) have collaborated on a new, total-line-solution installation of integrated hardware and software. It provides enhanced Surface Mount Technology component placement capability and quality while increasing efficiency and Statistical Process Control at Nortech's manufacturing facility in Mankato, Minnesota, the company noted. John Stewart, regional sales manager, Panasonic Factory Solutions Company of America, said "This collaborative effort is an ideal and local example of two companies working toward the same goal. Nortech is a growing organization that's strengthening its global footprint and acknowledging the expertise we bring to the table. Panasonic appreciates and looks forward to a long-term, mutually beneficial partnership." Shares of micro-cap Nortech have jumped 47% to $5.84 in midday trading and have been halted several times for volatility.