Due to increased energy and production costs, Metso Outotec is initiating a process to evaluate the options for the future of its foundry in Prerov, Czech Republic. The options include a partial or full divestment of the foundry or a potential closure.
The Prerov foundry produces metallic wear parts for Metso Outotec’s mining customers. The foundry is at a logistical disadvantage in supplying customers, and, furthermore, energy and production costs have made it unfeasible for Metso Outotec to continue operating the foundry.
“The Prerov foundry has good production capability and competent personnel, and historically it has had a specific role as part of our global foundry network. Continuing the operations in Prerov does not, however, meet our strategic profitability and development targets. As our first option, we are looking for a new owner for the foundry. Other options are also under consideration, if a new owner cannot be found in the short term,” says Heikki Metsälä, President, Consumables business area, Metso Outotec.
Metso Outotec will also adjust the number of personnel in Prerov to align with the order backlog volume. The planned redundancies will be implemented from January 2023 onwards. Currently, the Prerov foundry employs around 230 people.
Including Prerov, the company has five of its own foundries in China, India and Brazil, and an extensive network of external suppliers.