TriMas has announced it is taking proactive actions to optimise its TriMas Packaging group’s manufacturing footprint and better position its business to capture future operating leverage gains when end market demand recovers to more normalised levels.
The group will be closing a 160,000 sq. ft. leased manufacturing facility located in Rohnert Park, California, and in turn, will reposition all of the production assets to other existing US production locations. The company expects the transition to be completed by the end of 2023.
Additionally, TriMas Packaging will be consolidating two manufacturing facilities located in China into one new facility, which will provide improved efficiencies to better serve Asian markets as they recover.
TriMas Packaging’s existing facilities in Hangzhou and Haining will be closing, with production relocating to a new, larger facility in the Haining region.
Certain production will also be moved to other regions in North America, as TriMas Packaging seeks to localize production, where necessary, to better serve its customers.
In addition, TriMas Packaging will also be insourcing a third-party warehouse and distribution centre in New Jersey to directly capture logistics savings.
“While decisions to relocate production and distribution are never easy, we are opportunistically taking advantage of the current lower demand environment to better position our TriMas Packaging group for improved performance in the future,” said Thomas Amato, TriMas president and chief executive officer. “
We are committed to providing a seamless transition, and continuity of supply and service for our customers, while we drive continuous improvement across our business. We expect to experience the benefits of these actions in 2024, as we continue to believe the lower demand environment is temporary, and we will leverage well as macro-economic pressures impacting demand subside.”
TriMas to close 160,000 sq. ft. manufacturing facility in streamlining move
