DES PLAINES, IL -- Littelfuse has announced plans to transfer production and distribution from its Chicago-area facilities in Des Plaines, IL, and Elk Grove Village, IL, to lower-cost areas.

The move is expected to take place in a phased transition that will be completed by mid-2009. The project is expected to generate approximately $10 million in annual savings once completed, and will result in pre-tax restructuring charges and transition charges of approximately $9.5 million. Approximately half of this amount will be booked in the first quarter of 2007, with the remainder to be booked throughout the transition period.

“Today’s announcement is consistent with other decisions we have made to simplify our business and relocate manufacturing to lower-cost areas that are closer to our customers,” said Gordon Hunter, chief executive officer. “As always, the most difficult part of this decision was the impact it will have on our employees. We have a skilled and dedicated workforce that has made many valuable contributions to our growth and success over the years.”

Manufacturing operations in the Des Plaines facility will be moved to existing company locations in Mexico for automotive products and the Philippines for electronic products. “We plan to maintain our corporate offices in the Chicago area and invest in a technology center to further our leadership in circuit protection,” said Hunter. “We will soon begin working to define our requirements as a first step in the site-selection process.”

Littelfuse currently employs approximately 600 people in the Chicago area in manufacturing, distribution, corporate and technical functions. Approximately 300 employees will remain after the restructuring is completed.

For more information about Littelfuse, visit: http://www.littelfuse.com.