Press Release
Park Electrochemical Corp.
(516) 354-4100
PARK ELECTROCHEMICAL REPORTS ACCIDENT AT ITS NELCO/SINGAPORE MANUFACTURING FACILITY
LAKE SUCCESS, New York, December 2, 2002…Park Electrochemical Corp. (NYSE-PKE) reported that, on November 27, 2002, an explosion occurred in one of the four treaters located at its Nelco/Singapore manufacturing facility, and the treater in question was essentially destroyed. The destroyed treater had been especially retrofitted and converted to produce the company’s N6000 product line. The remaining three treaters located at Nelco/Singapore are standard Park Electrochemical treaters not related to the production of the N6000 product line. Two of the remaining treaters were not damaged, and the third treater sustained minor damage. The Nelco/Singapore building sustained minor damage and none of the other manufacturing equipment located at the facility was damaged. As of now, all manufacturing departments at the Nelco/Singapore facility are fully operational, except for the treating department, which is not currently operating. The company will not resume operation of the treating department until it has concluded its investigation into the cause of the explosion. Until the other treaters return to operation, Nelco/Singapore is being supplied and will continue to be supplied with 100% of its prepreg requirements from other Park Electrochemical locations in North America and Europe. At this time, the company has discontinued the production of its N6000 product line and it is unclear whether the company will resume production of that product line in the future. The annualized fiscal year-to-date revenue run rate for the company’s N6000 product line is approximately $2.5 million. The company reported that it is fully insured for the property damage and any business interruption losses it incurs as the result of the accident. Except for the discontinued N6000 product line, the company does not believe it will lose any revenues as the result of the accident. In addition, the company does not believe the accident will have a material adverse affect on the company’s consolidated results of operations or financial condition.
The company also reported that two of its employees were seriously injured by the explosion, and that one of these employees has died from his injuries. The other employee remains hospitalized at this time.
Brian Shore, Park’s President and CEO, said, “Our whole company is completely devastated by the tragic loss of life resulting from the explosion. For us, time has stopped, and concepts of any kind of normal life are only distant and vague memories. I really cannot find the words to express to you our complete sense of loss and devastation. I have tried to communicate my feelings to others, but my words simply come up short. In any event, we are picking up the pieces and are trying to get on with our lives. Although we all have suffered severe trauma, the Nelco/Singapore facility, with the exception of the treating department, is already back in full operation. Although our lives have been changed forever, we must pick up the pieces and move on...and this is what we are doing now.”
Brian Shore concluded, “Of course, our prayers are with our seriously injured employee who remains in the hospital, as well as his family and the family of our employee who succumbed to his injuries. In closing, I would like to express, on behalf of our entire company, our gratitude for the outpouring of support and concern we have received from people throughout our industry and even from our competitors. Although I do not believe we will ever really get over this tragedy, the outpouring of support has been very comforting to us.”
Certain portions of this press release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, the cost and availability of utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended March 3, 2002.
Park Electrochemical Corp. is a leading global designer and producer of electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park specializes in advanced materials for high layer count circuit boards and high speed digital broadband telecommunications, internet and networking applications. Park’s electronic materials business operates through fully integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, China, Germany, France, Connecticut, New York, Arizona and California. Park’s electronic materials business operates under the “Nelco” name.
Additional corporate information is available on the World Wide Web at http://www.parkelectro.com.
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Park Electrochemical Corporation48 So. Service Road, Suite 300
(631) 465-3600
Copyright 2002 (c) All Rights Reserved. Park Electrochemical Corp.
