Rohm and Haas Company Announces Plans to Cease Production at Paterson, NJ Plant

22-May-2001

Rohm and Haas Company today announced its plans to cease production and close its Paterson, NJ facility in December, 2001. "This decision was a very difficult one for the company," said Carol Eicher, Business Director of Rohm and Haas Company’s Organic Specialties Business. "However, a careful analysis of the dyes and markers business environment, coupled with the substantial capital investment required to continue manufacturing at Paterson, led us to the realization that closure of the site is the only viable business option." Eicher notes that the majority of production at Paterson faces increasing competition, limited growth potential, and eroding prices. This factor, coupled with the significant capital expenditures necessary to bring the facility into good manufacturing standards, let to the decision. The company intends to continue operations at Paterson through December, 2001. Customer are being notified and will be assisted by their account representatives during the transition process. Approximately 90 positions at the Paterson plant are affected by the decision. Employees will be offered severance benefits packages, and the company will provide outplacement services. The Paterson facility has pledged to make the transition as smooth as possible and will fulfill all of its environmental commitments. "This decision is a disappointment to all of us at Paterson," said Tim Montgomery, Plant Manager at Paterson. "This dedicated workforce has faced and overcome its share of challenges over the years. Employees have been working diligently to enhance the plant’s performance and positioning for success. The closure of this plant is not a reflection on the plant or its employees but rather a realization that we cannot invest limited capital resources in an eroding business." The Paterson facility was opened in 1946 and became a part of the Rohm and Haas Company with the acquisition of Morton International in 1999. The plant manufactures a number of specialty dye and marker products.

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