Kerr-McGee Chemical Places Manganese Dioxide Operations on Standby

Low-Priced Imports Hurt Product Sales

30-May-2003

Kerr-McGee Chemical LLC, a wholly owned affiliate of Kerr-McGee Corp., today announced that its electrolytic manganese dioxide manufacturing operations in Henderson, Nevada will be placed on standby during the third quarter of 2003 for an indefinite period.

"Low-priced imports have hurt our sales, as 95% of our electrolytic manganese dioxide is sold in the U.S.," said Pete Woodward, Kerr-McGee senior vice president of chemicals. "Our inventory is high enough that we must suspend manufacturing of this product temporarily."

The suspension of Kerr-McGee's manganese dioxide operations will result in the furlough of approximately 85 of 130 employees in Henderson. The Henderson facility will continue to produce boron trichloride used in pharmaceutical and semi-conductor industries and in manufacture of high-strength boron fibers for various products, and elemental boron for use in automotive safety air bag igniters.

Woodward added that the company is evaluating options that can help the company compete more efficiently in the manganese dioxide market.

"The analysis will help us determine the long-term plan for the Henderson site," Woodward said. "The quality of our workforce is as strong as the quality of our product. It is unfortunate that our product sales are being hurt by imports."

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