Chemtura eyes consolidation for two US units, 55 jobs to go

18 September 2009 18:01  [Source: ICIS news]

HOUSTON (ICIS news)--Chemtura has asked a US bankruptcy court for permission to close its household cleaning products plant in Ashley, Indiana, and consolidate the operation with the Conyers plant in Georgia, a spokesman for the US specialty chemical firm said on Friday.

If approved, the consolidation would likely mean the loss of 55 jobs at the Ashley plant, spokesman John Gustavsen said.

The Conyers plant already produces home care products as well as swimming pool supplies, he said. Both units are held by Chemtura's Bio-Lab subsidiary.

Gustavsen said Chemtura does not know when the court will respond to the request, which was filed earlier this month.

The spokesman was not able to specify which chemicals were consumed at the Ashley plant.

Chemtura has not asked the court for permission to consolidate any other production units, but it is seeking to shift some logistical services to a third-party provider, Gustavsen said.

The Chemtura operations that be would affected by the logistics request are in California, Indiana, Delaware, Georgia and Ontario, Canada.

Chemtura filed for Chapter 11 bankruptcy protection for its US operations on 18 March, and hopes to emerge from the process in March 2010.

According to financial market sources, the company is seeking a buyer for its polyvinyl chloride (PVC) additives business. Gustavsen said the company would not comment on any divestitures.

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