Chemtura Announces Strategic Restructuring of Antioxidants Business
Company to strengthen manufacturing footprint to reduce costs, increase efficiencies and serve customers more effectively
Chemtura Corporation announced that the company plans to restructure its global supply chain for standard antioxidants in order to position itself to be more competitive in the world plastics market and to more effectively serve its global customers. The restructuring supports Chemtura's overall objectives of reducing costs and optimizing its global manufacturing footprint, while maintaining the company's strong commitment to the antioxidants business.
According to the company, this restructuring, which includes the closing and/or divesting of selective sites in Europe, as well as potential investments in other parts of the world to better meet customer needs, will result in pre-tax charges, principally severance costs, of approximately $15 million to $20 million and accelerated depreciation of approximately $30 million to $35 million in the second and third quarters of 2007.
Chemtura's manufacturing facilities at Pedrengo and Ravenna, Italy, and Catenoy, France will be affected by these changes. During the third quarter of 2007, the company intends to end standard antioxidant production and to close the antioxidant facilities at Pedrengo and Ravenna and also proposes to shut down two intermediate chemical products at Catenoy. The intermediates produced at Catenoy are used at the Pedrengo facility.
Approximately 125 to 135 employees would be affected at Pedrengo, about 25 to 35 at Ravenna and around 35 at Catenoy.
"We remain highly committed to our antioxidants customers," Anne Noonan, president of Chemtura's Polymer Additives Group, said. "To replace the products manufactured at Pedrengo and Ravenna and to ensure consistent supply to our customers, Chemtura will continue to supply antioxidants through a combination of local sourcing agreements and through the company's own large, global manufacturing network."
The network includes facilities in the United States, Germany, Saudi Arabia and South Korea.
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