Kemet relocates manufacturing facilities

US-based electronics manufacturer Kemet Corp (NYSE: KEM) will relocate some of its production facilities to Mexico and China as part of a restructuring initiative announced this week, local and international press reported. Kemet said Mexican plants will serve as the company's primary manufacturing facilities, serving North American and European customers, but that Chinese facilities may equal Mexican production within 2-3 years. The company expects the move to allow for savings of up to US$50mn-US$60mn by fiscal year 2006. But relocating production will cost US$35mn, plus another US$15mn for write downs on existing US facilities. Kemet makes electrical parts for computers and wireless telephones.