NetShape Technologies Inc. has announced the consolidation of its two plants located in Pennsylvania. The Clearfield plant will be consolidated into the Falls Creek facility. It is expected the Clearfield plant will cease operations by June 2009.

“Due to underutilization at those two facilities, it is necessary for us to combine the operations,” said Chief Operations Officer Jeff Moorefield. “We have an over-capacity situation and it no longer makes good business sense to operate both facilities. We must streamline our operations to maintain a competitive position in the marketplace. This move will increase our efficiencies and utilize the Falls Creek plant at a production level closer to its operating potential.”

Clearfield has 83 employees and it is anticipated that more than half of those employees will accept available positions at the sister facility in Falls Creek. The two plants are about 30 miles apart.

“We have met with the work force at both plants to communicate our plans. We are sensitive to the needs of all our associates and will make every effort to assist them during this transitional period. We believe in open and honest communication, and that is why we announced this action so early. We wanted our associates to know as soon as the decision was made,” said Vice President of Human Resources John Maxwell.

“We are confident that with the number of jobs moving to Falls Creek, along with normal attrition, will result in a majority of associates transferring to the Falls Creek facility.”

NetShape Technologies manufactures powder metallurgy components for various industries. The company is also a leading US metal injection molding (MIM) producer.