Crompton Details $60 Million Restructuring Initiative

20-Sep-2001

Crompton Corporation (NYSE:CK) today announced the closing of six plants, workforce reductions at numerous other facilities and efficiency improvements as major components of a restructuring plan expected to yield $60 million in cost improvements by the end of 2002.

The company expects to take a pretax charge of $90 to $110 million as a result of the restructuring, primarily in the third quarter. Less than 50 percent of the charge will be cash and is expected to be disbursed over the next few years.

Approximately $10 million in cost improvements is expected to be achieved during 2001, with the remaining $50 million being accomplished in 2002.

Components of the restructuring inplemented to date include: - Closing facilities in Naugatuck, CT; Edison, NJ; Newark, NJ; Nutley, NJ; Huddersfield, UK; and Luton, UK; and - Workforce reductions in Gretna and Taft, LA; Memphis, TN; Pawcatuck, CT; Petrolia, PA; Somerville, NJ; Kaohsiung, Taiwan; and certain administrative positions.

These actions, coupled with early retirement and attrition programs, are expected to result in elimination of 700 jobs, or approximately 8% of Crompton's worldwide workforce, by the end of 2002.

Crompton has announced the companywide expansion of its Six Sigma program, which focuses on improved efficiencies and cost savings and is streamlining various business processes, including transportation and logistics. The combination of these efforts is expected to yield significant cost improvements in 2002, as part of the $60 million program.

"We are taking the types of decisive actions needed to reduce our cost base and enhance our competitive position for the future," said Vincent A. Calarco, chairman, president and chief executive officer of Crompton Corporation. "Our objective is to achieve the lowest cost position in each of our businesses while maintaining the highest standards of customer service. We have focused our efforts on areas where we can reap significant savings while ensuring an uninterrupted supply of products and services to customers."

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