May 25, 2006 -- Charlotte-based Dynacast International, a diecaster of zinc, aluminum, and magnesium, is instituting a “capacity realignment to support customer migration to low-cost countries.” According to CEO Simon Newman, “Our customer base is moving manufacturing operations to low-cost countries, and it is important to our future to expand our facilities in these areas.”
Citing rising operating rates at its plants in China and Mexico, specifically from its U.S. customer base, Dynacast will transfer the current activities of its Spartanburg, SC, plant to other facilities in North America. The Spartanburg plant will be closed when the transfer is complete, but no date for that closing was announced.
“Although this impacts many dedicated employees in Spartanburg,” the company stated, “in today’s highly competitive global marketplace manufacturers must maximize operations to remain competitive. Dynacast will do everything possible to assist employees in finding new employment.”
Dynacast is adding a 40,000-ft2 addition to its plant in Shanghai, the second expansion of that facility and probably not the last. Dynacast Shanghai will have a total of 150,000 ft2 when the current project is complete in June, and Dynacast reports the facility is likely to be expanded again early in 2007.
In Mexico, Dynacast is underway with a 20,000-ft2 expansion of its plant in Cuaultitlan, near Mexico City, will be complete in July.