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Metso to discontinue foundry operation in South Africa

Published by , Editorial Assistant
World Cement,

Metso is continuing to develop the global supply footprint in its Minerals Consumables business area. As part of the initiative, the consultations evaluating closure or other alternatives concerning the Isithebe foundry in South Africa have resulted in a decision to discontinue the foundry operation by the end of September 2019.

The decision affects approximately 200 employees currently employed at the foundry and its support functions. This undertaking will have a small negative impact on Metso’s third quarter result.

Metso’s foundries produce metallic wear part castings for the mining and aggregates industries. In addition to Isithebe, Metso has five of its own foundries globally and an extensive network of external suppliers.

“Our strategy is to utilise synergies of the most efficient manufacturing and sourcing opportunities globally, to ensure the best value, availability, and quality,” said Sami Takaluoma, President, Minerals Consumables business area. “After careful evaluation of all opportunities for Isithebe, discontinuing the operation was identified as the only feasible solution. This is very unpleasant but necessary action for us. We will focus on ensuring a sustainable transaction for Isithebe, as well as uninterrupted service to our customers.”

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Cement news 2018