These excerpts taken from the KEM 10-K filed Jun 16, 2008.
KEMET is headquartered in Simpsonville, South Carolina, and has a total of 23 manufacturing plants located in the southeastern United States, Mexico, Europe, and Asia. The Company's existing manufacturing and assembly facilities have approximately 3.0 million square feet of floor space and are highly automated with proprietary manufacturing processes and equipment.
The Mexican facilities operate under the Maquiladora Program. In general, a company that operates under this program is afforded certain duty and tax preferences and incentives on products brought into the United States. The Company's manufacturing standards, including compliance with worker safety laws and regulations are essentially identical in the United States, Mexico, Europe and Asia. The Company's Mexican, European and Asian operations, like its United States operations, have won numerous quality, environmental and safety awards.
Most of the Company's manufacturing and assembly facilities produce one product or a family of closely related products. Management believes that this focused approach to manufacturing allows each facility to shorten manufacturing time, optimize product flow, and avoid long and costly equipment retooling and employee training time, all of which leads to overall reduced manufacturing costs.
The Company has developed just-in-time manufacturing and sourcing systems. These systems enable the Company to meet customer requirements for faster deliveries while minimizing the need to carry significant inventory levels. The Company continues to emphasize flexibility in all of its manufacturing operations to improve product delivery response times.
Management believes that substantially all of its property and equipment is in good condition, and that overall, it has sufficient capacity to meet its current and projected manufacturing and distribution needs.
As of March 31, 2008, the Company classified two idle properties as Assets held for sale. The Company has listed these manufacturing facilities in Mauldin and Fountain Inn, South Carolina with real estate brokers for sale. Accordingly, these facilities are presented on the Consolidated Balance Sheets as Assets held for sale. The assets held for sale are not included in the property listing table below.
The following table provides certain information regarding the Company's principal facilities:
KEMET is headquartered in Simpsonville, South Carolina, and has a total of 23 manufacturing plants located in the southeastern United States, Mexico, Europe, and