DMC Global to shutter Siberian production facility, shed 47 jobs

BROOMFIELD — DMC Global Inc. (Nasdaq: BOOM) plans to close its oilfield products manufacturing plant in Tyumen, Siberia, this year, resulting in the loss of 47 jobs.

The closure of the plant, which has operated since 2011, is a result of recently completed expansions of the company’s DynaEnergetics oilfield product facilities in North America and Germany.

“The new capacity has significantly improved DynaEnergetics’ operating efficiencies and enabled the business to more effectively serve its global customer base,” according to a company news release.

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DMC Global expects to record $15 million to $20 million in non-cash charges during the second half of 2019 as a result of the Siberian plant closure. 

“The DynaEnergetics team has been very effective at improving operational efficiencies and establishing capacity and resources where they most efficiently meet customer needs,” DMC Global CEO Kevin Longe said in a prepared statement. “Our decision to discontinue operations in Siberia reflects our ongoing focus on strengthening our operating performance, minimizing risk, maximizing returns on invested capital and enhancing value for our stockholders.”