Pretty common in manufacturing. You hit a certain point and realize that the cost to grow capacity is enormous, so you shift gears and send it overseas. A common problem is that if don't maintain process control while outsourcing, you tend to get "equivalent" product in. Oftentimes in plastics, I've seen "equivalent" measured in many, many different ways.
Sending product offshore can be very lucrative, but you MUST stay on top of it.