Nypro Inc. is turning over its molding operations in Brazil to a customer and downsizing a plant in the Dominican Republic.
``In Brazil, Nypro has no major molding customers and we have been working with a global strategic partner, Elcoteq, which has a burgeoning need for space and we will transfer the facility to them,'' said Al Cotton, spokesman for Nypro in Clinton, Mass.
Elcoteq SE, an Espoo, Finland-based electronics manufacturer, will take over the space. On its Web site, the company said it has ``volume plants'' in Manaus, Brazil, as well as Monterrey and Ciudad Ju rez, Mexico. A spokesman for Elcoteq Americas, based in Dallas, said the company is leasing the Brazilian plant for contract work. Elcoteq Americas officials were traveling and unavailable for further explanation.
Nypro's Brazil operation was set up in November 2004, when Nypro invested $10 million to construct a molding and contract manufacturing site in Manaus. The 60,000-square-foot facility was constructed in an industrial park where Brazil's mobile phone production was concentrated.
Nypro has had a molding facility in Haina, Dominican Republic, for a few years. In December 2004, it started construction of another, 100,000-square-foot facility under an agreement with ConvaTec, a unit of Bristol-Myers Squibb. ConvaTec makes chronic-care products and added a second facility in mid-2005.
Cotton said Nypro is making the adjustments to suit its customers.
``Nypro has a major contract manufacturing operation in the Dominican Republic, plus a smaller molding operation. Some of the molding work there is scheduled to be transferred to other Nypro locations, while other molding operations will remain. Nypro remains committed to the Dominican Republic.
The contract manufacturing operations will continue,'' Cotton said.
He said the move does not mean that Nypro is leaving South America.
Nypro's operations in Mexico are growing, Cotton noted. The company operates two facilities in Monterrey, a plant in Chihuahua, and a joint venture with Sealaska Corp. in Guadalajara.