Mining OEM specialist Metso, which recently announced a merger with Outotec, will discontinue its Isithebe foundry by the end of September 2019 – resulting in the loss of approximately 200 employees.
The foundry is located in South Africa, relatively half way between Durban and Richards Bay.
In developing its global supply footprint in its minerals consumables business area, Metso says the decision to close Isithebe follows consultations in which it evaluated the closure or other alternatives concerning.
LEARN MORE: About the Metso/Outotec merger
This undertaking will have a small negative impact on Metso’s third quarter result.
“Our strategy is to utilise synergies of the most efficient manufacturing and sourcing opportunities globally to ensure the best value, availability and quality for our customers. After careful evaluation of all opportunities for Isithebe, discontinuing the operation was identified as the only feasible solution,” says Sami Takaluoma, President, Metso’s Minerals Consumables business area.
“This is a very unpleasant but necessary action for us. We will focus on ensuring a sustainable transition for Isithebe as well as uninterrupted service to our customers.”
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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.