Chevron acts to cut back costs

14 February 1994 00:00  [Source: ICB]

CHEVRON CHEMICAL is to implement a major cost reduction plan, which will result in the reduction of around 475 jobs over the next three years and cut operating expenses by some $100m/year by 1996.

Company president, John Peppercorn, said the moves were necessary in light of the slow expected recovery and Chevron Chemical's 'clearly unacceptable' financial performance in the past two years.

Around 345 of the job reductions will be effected through asset divestments, some of which have already been announced. These involve: Chevron's agricultural businesses, including the closure of its Maryland Heights, Missouri, agro-chemical plant; the sale of its fertiliser plant in St Helens, Oregon; and the sale of Chevron do Brasil's asphalt business.

Other moves of the cost-reduction plan include: the reorganisation into global regions of the oronite additives division; the closure of Chevron do Brasil's oilfield chemical business; completing Chevron's computer system integration and business redesign project; streamlining and reducing operating costs at the company's three largest plants in Cedar Bayou and Orange, Texas, and Belle Chasse, Louisiana; streamlining transportation, finance and other staff functions; and reducing some company-sponsored R&D costs.

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