Key Tronic Corporation has announced a corporate reorganization that will see the company end its manufacturing operations at its China-based facility. Instead, the China operation will shift focus to sourcing and procurement activities to support Key Tronic’s other global locations. Manufacturing demand previously handled in China will be relocated primarily to the company’s expanded facility in Vietnam, with no material adverse impact on revenue expected. The reorganization plan is anticipated to be completed by the fourth fiscal quarter of 2026 and is expected to result in approximately $1.2 million in quarterly savings following completion. The company expects to incur severance and related cash expenses of about $1.3 million and non-cash charges related to inventory and asset write-offs amounting to $4.8 to $5.8 million. The move is part of a broader strategic initiative to better align resources and reduce risks associated with future geopolitical tensions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Key Tronic Corporation published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0000719733-25-000112), on December 22, 2025, and is solely responsible for the information contained therein.