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Greenville, S.C. — KEMET Corp. has announced strategic plan to enhance the company's position as a global leader in passive electronic technologies.
KEMET's strategy has three foundations:
- Enhancing their position as the market leader in quality, delivery and service through outstanding execution,
- Having a global mindset, with an increased emphasis on growing their presence in Asia, and
- Accelerating the pace of innovations to broaden our product portfolio.
To execute this strategic plan, KEMET is reorganizing its operations around the world. Over the next two years, several KEMET facilities will be relocated based on access to key customers, access to key technical resources and knowledge, and availability of low cost resources.
KEMET's corporate headquarters will remain in Greenville, S.C., though individual functions will evolve to support global activities in Asia, Europe and North America, either from Greenville or through locations in appropriate parts of the world.
Commodity manufacturing currently in the United States will be relocated to our lower cost manufacturing facilities in Mexico and China. Approximately 650 production-related jobs in the United States will be impacted by this relocation over the next two years. Production that remains in the U.S. will focus primarily on early stage manufacturing of new products and other specialty products for which customers are predominantly located in North America.
To accelerate the pace of innovations, the KEMET Innovation Center is being created. The primary objectives of the Innovation Center are to ensure the flow of new products and robust manufacturing processes, while enabling these products to be transferred rapidly to the most appropriate KEMET manufacturing location in the world for low-cost, high-volume production. The main campus of the KEMET Innovation Center will be located in the Greenville, S.C., area.
KEMET's Mexican operations will continue to be the company's primary production facilities supporting North American and European customers. One of the strengths of KEMET Mexico is that it is truly a Mexican operation, including Mexican management and workers. These facilities will be responsible for maintaining KEMET's traditional excellence in quality, service and delivery, while driving costs down. Facilities in Victoria and Matamoros will remain focused primarily on tantalum and polymer capacitors, and our facilities in Monterrey will continue to support ceramic capacitor lines.KEMET has a well-established sales and logistics network in Asia to support its customers' Asian operations. Initial China production facilities in Suzhou near Shanghai will be operational by the last quarter of calendar 2003. Manufacturing operations in China will grow rapidly, and within two to three years KEMET anticipates that production capacity in China may be equivalent to Mexico, with most of the equipment to support these operations being transferred from existing capacity in the United States or Mexico. Like KEMET Mexico, the vision for KEMET China is to be a Chinese operation, with Chinese management and workers, to help achieve KEMET's objective of being a truly global company. These facilities will be responsible for maintaining KEMET's traditional excellence in quality, service, and delivery, while accelerating our cost reduction efforts and supporting our efforts to grow our customer base in Asia.
KEMET will maintain and enhance its strong European sales and customer service infrastructure, allowing KEMET to continue to meet the local preferences of European customers who remain an important focus for KEMET going forward.
KEMET Corp. is a global leader in passive electronic technologies, by being the preferred supplier to the world's most successful electronic manufacturers and distributors through providing comprehensive solutions in an easy-to-buy-from environment encompassing technology, quality, delivery and service at competitive prices. For more information, visit www.kemet.com.