“This is based on a strategic decision to consolidate and re-prioritise the Group’s efforts in its core business and on-going sustainable business transformation journey,” a press release said.
The company will still cover powder metallurgy, electrification, surface coating and additive manufacturing.
Accrording to Höganäs, this decision was prompted by an “imposed force majeure situation” at its Niagara Falls plant in 2021, which ended up forcing it to shut down the site.
The closure will reportedly impact around 30 of Höganäs’ employees and the closing of operations in Cary, US and activities in Brazil, China and India.
“This has been a hard decision to make, and we have worked thoroughly to explore options and investigate alternative routes forward,” said Fredrik Emilson, CEO. “However, given the current market traction, we need to re-focus our efforts on our core business and continued sustainable business transformation journey. Our priority will be on helping the affected employees and we are committed to supporting them moving forward.”
Höganäs says that it will begin to wind down its business immediately and expects to cease operations in the US by the end of June 2022.
