Metso Outotec, which owns a foundry in Prerov, Czech Republic for the production of wear parts for mining customers, revealed it is considering the full or partial divestment of the asset – or a possible closure.
The company cited increased energy and production costs for the move, which it confirmed on 22 November.
No final decision has yet been made. Metso Outotec’s position is that the foundry has a “logistical disadvantage” for customer supply due to the issues, and that the energy and production costs have made it unfeasible for operations to continue.
“The Prerov foundry has good production capability and competent personnel, and historically it has had a specific role as part of our global foundry network,” said Heikki Metsälä, President, Consumables business area.
“Continuing the operations in Prerov does not, however, meet our strategic profitability and development targets. As our first option, we are looking for a new owner for the foundry. Other options are also under consideration, if a new owner cannot be found in the short term.”
Prerov currently employs 230. In January, it is planning to lay off an unknown number of workers to align with the order backlog volume.
The facility is one of several Metso Outotec owns globally. Including Prerov, the company has five of its own foundries in China, India and Brazil, and an extensive network of external suppliers.
Source: mogroup.com