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[July 2002]
KEMET to Close Plants
KEMET Corporation (Greenville, SC, USA) - the producer of surface-mount tantalum, ceramic and aluminium capacitor technologies - has announced plans to close one manufacturing facility in Greenville and to close one of two facilities in Matamoros, Mexico. These actions are part of cost saving initiatives over the past year to respond to the prolonged downturn in the electronics industry.They include a reduction of manufacturing and support personnel of approximately 185 employees in the USA and approximately 240 in Mexico. This initiative will result in an annualised cost reduction of around US$10 million.
In the September 2002 quarter, the company will recognise one-time charges of US$5 million related to employee related severance costs and US$10 million related to the disposal of assets. KEMET will provide additional guidance for the September 2002 with its June 2002 quarter earnings release shortly.
ENDS