March 5, 2024 | After evaluation of future options for its foundry in Prerov, Czech Republic, Metso has decided to discontinue operations at the site.
According to the statement of Metso, the decision is based on fundamental changes in the market environment, which have negatively impacted the foundry’s competitiveness.
The decision affects around 160 manufacturing-related positions. Operations at the foundry will be ramped down during the second quarter of 2024.
“Last year, we evaluated the future of our Prerov foundry as a part of Metso’s global supply network and, on the back of identified actions to improve competitiveness, decided to continue operations. Unfortunately, and despite many efforts, changes in the market environment, combined with the assessment of the necessary investments required for the ageing facility indicate that the closure of the foundry is now the only feasible alternative. We highly appreciate and want to thank our employees in Prerov for their efforts and commitment to serving our customers. Metso will do its best to support the employees in finding new job opportunities,” says Heikki Metsälä, President, Consumables BA.
After the closure of Prerov, the company will have foundries in Brazil, India, China and Australia, and an extensive network of external suppliers.
Background
The Prerov foundry produces metallic wear parts for Metso Outotec’s mining customers. In an earlier evaluation process announced in November 2022, Metso Outotec had concluded that the foundry would continue to operate due to falling energy prices and better market prospects for the required production capacity.
Metso is supplying the aggregates, minerals processing and metals refining industries globally. Headquartered in Espoo, Finland, Metso employs over 17,000 people in close to 50 countries, and sales for 2023 were about EUR 5.4 billion. The company is listed on the Nasdaq Helsinki.