KEMET, the world's leading supplier of passive electronic components, announced that it will close its manufacturing plant in Granna, Sweden. Through this initiative, KEMEI will further increase the gross profit margin, net income and cash flow of the film capacitor and electrolytic capacitor business units. The Granna plant currently produces axial electrolytic capacitors, which are mainly sold to the automotive industry.

After the plant is shut down, KEMEI will move the axial electrolytic capacitor production line from Granna to its plant in Evora, Portugal. The company expects to save approximately $600,000 in operating costs in fiscal year 2020 (starting on April 1, 2019) and will save $2.5 million annually thereafter.

KEMET CEO William Lowe said: "We plan to simplify the manufacturing of axial electrolytic capacitors through this relocation, so that we can increase the flexibility, capability and competitiveness of the market."