R&H to merge powder coatings ops, close Virginia plant

26 May 2005 16:58  [Source: ICIS news]

HOUSTON (CNI)--Rohm and Haas said Thursday that 70 persons could lose their jobs in the closing of its Wytheville, Virginia powder coatings plant.

 

The Philadelphia-based company said the plant would be shut in the first quarter of 2006. Its Warsaw, Indiana and Reading, Pennsylvania plants would make up for the lost production by operating 24 hours a day.

 

It said the closing of the plant at Wytheville, 200 miles southwest of Richmond, Virginia, would save it about $6m (Euro4.8m)/year pre-tax.

 

A spokesman said the company will offer to reassign Wytheville employees to the other two power coatings plants or other Rohm and Haas facilities.

 

Rohm and Haas said the Indiana and Pennsylvania plants are closer to major customers and transportation hubs and offer more manufacturing flexibility.

 

As a result of the plant closing, Rohm and Haas said it expects to take restructuring charges of $8-10m related to asset impairments and $4m in cash charges related to termination benefits and plant closing costs.

 

Rohm and Hass is a specialty materials company with operations in 27 nations and sales of more than $8bn/year.


By: Patrick Crow
+1 713 525 2653



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