15 January 2009 23:07 [Source: ICIS news]
HOUSTON (ICIS news)--Polyvinyl chloride (PVC) compound producer PolyOne will cut about 370 jobs and close at least one plant in a cost-savings move amid a prolonged demand slump, the US company said on Thursday.
The Cleveland-based company said it will close its Niagara facility in Ontario, Canada, cut back other production, eliminate 370 positions and reduce the work schedules of another 100-300 employees “as a result of recent unprecedented declines in demand due to the deteriorating global economic climate”.
Additionally, PolyOne said it was planning other actions that include freezing executive salaries throughout 2009.
“Demand in cyclical end markets such as housing and automotive has weakened considerably over the last year. As such, [PolyOne] has taken a disciplined and proactive approach to reducing costs and conserving cash,” the company said in a statement.
PolyOne announced a manufacturing realignment in July to deal with an anticipated drop in US demand. However, the company said global demand declined precipitously as the financial crisis spread to overseas markets.
“We recognise that our announcement today has far-reaching impacts on our associates, their families and the communities in which we operate. However, this urgent and aggressive response is prudent and required to ensure that PolyOne remains competitive,” said PolyOne CEO Stephen Newlin.
The company said it expects these actions will deliver pre-tax savings of about $25m-30m in 2009 and about $40m on an annualised run-rate basis.
($1 = €0.76)
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