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Electronics Production | December 23, 2008

Kemet to shed 1500 in Europe, Mexico and China

Kemet has said that the company will lay off 1500 employees at its plants in Europe, Mexico and China.
The job reductions will begin immediately and be completed by mid-January 2009. The total cost savings from these actions will be approximately $4.0 million per quarter or $16.0. million annually.

The Company also announced, where possible, that it will impose a ten percent reduction in pay for all salaried employees effective January 1, 2009, excluding those on a commission based salary. To implement this action, negotiations are underway with all labor unions where employees are represented by collective bargaining agreements. In the U.S., the Company will also temporarily suspend its 401(k) matching percentage, reducing it from six to zero. Permanent reductions will also be made in several retiree benefit programs.

Salary reductions for affected employees are expected to be restored when the financial performance of the company returns to acceptable levels. There is no implementation cost associated with the salary and benefits reductions. Savings from these initiatives will be approximately $1.0 million per month.

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