Untitled Document

Johanson Opens New Facility

20 March 2018

Dear Valued Customer,

Johanson companies' mission is to provide its customers with exceptional products and services. Over the past two years, the California State and Federal governments have raised minimum wage rates 20% and will raise them another 25% by 2022 while foreign competition continues to drive global product prices downward. As a result, we are proud to announce that we will be opening a facility in Mexico both to consolidate our current operations and accommodate growth for our future acquisitions.

A portion of the manufacturing operations at our Sylmar and Camarillo facilities in California will be transferred to a new state-of-the art facility in Tijuana, Mexico during 2018. Currently, the following product lines may be affected with our consolidation: Switch Mode Power Supply Leaded, Radial Leaded, High Temperature Leaded, X2Y and Planars. Our operations in Asia will not be impacted.

The Tijuana operation will contain new production equipment that allows Johanson to have parallel operations during the transition that enables us to maintain delivery commitments to our customers while performing stringent training and process qualifications in the new facility.

All new personnel will be trained by experienced people from both California facilities and all major Quality based certifications (i,e. ISO 9001) will be obtained during the transition period.

Product built in the new facility will be shipped to the Johanson California factories for final test and inspection until we are satisfied that the Tijuana product quality and process controls consistently meet our requirements.

When the transition is completed, we expect to have more robust and efficient processes that will benefit all of us.

Should you have any questions, please address them to your local Johanson Sales Manager or myself.

Sincerely,

John Ricardi
VP Sales & Business Development