TriMas, a diversified manufacturer of engineered products, has announced its proactive actions to enhance the manufacturing footprint of its TriMas Packaging group. These measures aim to position the business strategically to capitalise on future operating leverage gains when the demand in the market returns to more normal levels.
TriMas Packaging group has made public its decision to shut down a leased manufacturing facility spanning 160,000 square feet in Rohnert Park, California.
As part of this move, the company plans to relocate all production assets to other existing production locations within the United States. It is expected that the transition will be finalised by the end of 2023.
Consolidation of Chinese manufacturing facilities
TriMas Packaging will also undertake the consolidation of two manufacturing facilities currently situated in China. The company intends to merge these facilities into a single new location, which will provide improved operational efficiencies to cater to recovering Asian markets.
The existing facilities in Hangzhou and Haining will be closed down, and production will be shifted to a larger facility in the Haining region.
Some production will also be relocated to other regions in North America, as part of TriMas Packaging’s efforts to localise production when necessary, in order to better serve its customers.
TriMas Packaging also plans to bring a third-party warehouse and distribution centre located in New Jersey under its own management. This decision will enable the company to directly capture logistics savings and streamline operations.
Forward-looking statements
TriMas President and Chief Executive Officer, Thomas Amato, acknowledged that the process of relocating production and distribution is never easy.
However, he emphasised that the company is taking advantage of the current lower demand environment to strategically position the TriMas Packaging group for improved future performance.
Amato assured customers that the transition will be smooth and uninterrupted, with a continued focus on providing supply and service. He expressed confidence that the benefits of these actions will be realised in 2024, as TriMas anticipates a temporary downturn in demand, expecting to leverage well as macro-economic pressures subside.
