28 July 2008 16:46 [Source: ICIS news]
HOUSTON (ICIS news)--US polyvinyl chloride (PVC) producer PolyOne plans to shut down seven plants in North America and one in the UK, the company said on Monday, without disclosing the locations of the plants.
PolyOne did nto specify which products were made at each of the plants. The closures will take place over the next nine months and reduce the company's staff by about 150, PolyOne said.
PolyOne is closing the plants, in part, due to rising costs in raw materials and energy, according to a statement by Stephen Newlin, CEO.
Falling demand from housing and automobiles gave PolyOne a chance to remove excess capacity and make improvements in its supply chain, Newlin said.
PolyOne will move production to its other plants at an investment cost of about $12m, the company said. Service should not be disrupted as a result of the closings.
Altogether, the changes should save PolyOne $17m (€11m) on an annualised basis.
As a result of the plant closings, PolyOne expects to take a one-time charge of roughly $31m, of which about $18m will be non-cash, the company said.
"Difficult decisions like these are taken very seriously," Newlin said. "After thorough study, it was determined that this capacity reduction is needed to improve our near-term operating efficiency while advancing our longer-term strategic position.
($1 = €0.64)
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