Now that the operation in China has been operating for 5 years DSF have assessed our investments in China and have decided to close our factory in TEDA Tianjin.
The factory has operated very successfully, producing a range of ethyl silicate bonded Chemcast products and melter bottom blocks in RMT CF40, although profitability has not been as good as originally planned.
A thorough review of current and future costs and predicted sales has shown that this facility will not make the required return on our investment and we have therefore decided to close the factory and to operate in a different way.
Our WOFE company DSF Refractory Materials (Tianjin) Co. Ltd. will continue to operate, although from September the address will change to: 1302 No.1 Buliding, Hongxing international Apartment area, Jinbindadao, Tianjin, China.
Manufacturing will continue in a new site in Tangshan of a new company in partnership with a local company, with DSF taking a shareholding and providing full technical support and an international sales function. This will continue to produce Chemcast products for the tin bath and forehearths and melter subhearth materials.
The new company will be named DSF YinHai Refractories Tangshan and will be managed by our existing China General Manager David Collinge, who himself will take equity in the new business.