Dynacast plans projects in Asia and Austria, to spend $23 million

By Sahara Marte

New York, Aug. 17 - Dynacast International LLC expects to see better productivity after expansion projects in Asia and Austria are completed, Simon Newman, president and chief executive officer, said during the company's second quarter earnings conference call.

Dynacast has negotiated plans for expansion throughout Asia, where 65% of the company's earnings are generated. It also plans to build a new plant in Austria and commence a new technology program for these plants.

The company plans to start these projects in the next 12 to 19 months and expects to spend about $23 million, said Newman.

"Despite the headwinds of southern Europe, profit growth in Asia and north America seem optimistic," he added. "As long as the economy doesn't worsen."

The company will use its existing credit facilities to fund new projects over the next year. It has a $50 million revolving credit facility, a five-year $50 million term loan and $350 million of 9¼% senior secured second lien notes due 2019.

At the end of the second quarter, the company reported $390 million of long-term debt and a $14.3 million decrease in cash flow compared to 2011.

New development will ensure higher earnings for upcoming quarters, Newman said.

Dynacast International LLC is a Charlotte, N.C.,manufacturer of small, engineered die cast components for companies in industries such as automotive electronics, consumer electronics, healthcare, hardware, computers and peripherals and many others.

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