PSM To Close Czech Fastener Manufacturing Plant
PSM To Close Czech Fastener Manufacturing Plant
Jason Sandefur
PSM International, the fastener division of McKechnie, will close its Brno, Czech Republic, fastener production facility by April 2006. McKechnie was acquired by Melrose PLC in May 2005, shortly after PSM had relocated most of its UK fastener manufacturing to the Czech Republic.
In a November letter to customers PSM International CEO Bob Morgan told clients that “PSM International has decided to significantly reduce its activities in Europe. To this end we intend to cease manufacturing and supplying fasteners in this region with immediate effect.”
In a June 2005 interim report, Melrose CEO David Roper noted that “sales of product manufactured in China continue to be profitable, whereas product manufacturing in Europe is struggling to cope with a relatively high cost base.”
PSM’s production facility in Wuxi, China, is expected to relocate to a site 20 times larger than the one initially adopted four years ago. Web: mckechnie.co.uk �2005/6 Fastener & Fixing Europe Magazine/FastenerNews.com
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