Kerr-McGee to Close Mobile, Ala. Plant in June
The Mobile plant processes and supplies a portion of the feedstock for the company's two titanium dioxide pigment plants in the United States. Through Kerr-McGee's ongoing supply chain initiatives, the company is purchasing the feedstock more economically than can be manufactured at Mobile. The company anticipates that supply chain programs will result in annual operating savings of approximately $25 million to $30 million beginning in 2004.
"In January, we announced plans to close the Mobile plant by year-end 2003 as part of our overall efforts to enhance operating profitability and focus on our core pigment business," said Pete Woodward, Kerr-McGee senior vice president of chemicals. "Ensuring the ongoing supply of feedstock for our pigment plants was a significant factor in establishing the closing date. We can begin realizing savings by ceasing operations at Mobile in June."
The Mobile plant, built by Kerr-McGee in 1976, employs approximately 140 people. Kerr-McGee estimates that the remaining cost of closing the plant, including decommissioning expenses, will be approximately $15 million after taxes, which will be taken as a special charge in the second quarter of 2003.
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