Bodycote to open new treatment facility in Mexico

21st Jun 2011 10:35

Investors gave the thumbs-up to metals and alloys treatment company Bodycote's plans to open a new vacuum heat treatment facility in northwest Mexico in the third quarter of 2011.The announcement of the planned opening of its new plant, which is situated in the city of Empalme in the State of Sonora, comes a day after the company signed a 10-year renewal agreement with Rolls-Royce. Bodycote said the cost of establishing this facility has been included within its capital expenditure plans, which were set at the start of the year. The engineering firm said this plant will be a more cost-effective option for other aviation manufacturers in the region as it would streamline the supply chain by reducing labour and logistical costs.Shares of the company, which fell about 6% on Monday despite the Rolls-Royce deal, nudged 0.8% higher to 341p in Tuesday morning trade.AR