Kemet moves K-salt facility equipment to Mexico

The solid capacitors group will modify its vertical integration strategy by the relocation of its K-Salt facility equipment to its Matamoros Mexico plant With this move, Kemet expects to achieve annual operating cost savings of approximately USD 3.5 to USD 4.0 million and improve annual working capital by approximately USD 8.0 million. The cost for the equipment relocation is expected to amount to 1.2 million. Per Loof, Kemet Corporation's Chief Executive Officer, stated, "We have been successful at improving our consolidated gross margin over the past two years through our vertical integration strategy and restructuring plan throughout our business groups and we are now closer to achieving our stated overall goal of 25% gross margin. While relocating a facility is a difficult decision and we are sensitive to the impact this has on our employees, their families and the communities, we are taking this action to address the cost of raw materials and to improve our gross margin."