24 August 2010 22:57 [Source: ICIS news]
HOUSTON (ICIS)--US biocides producer Arch Chemicals plans to close two research and development (R&D) centres as part of a plan to consolidate those sites' operations to Alpharetta, Georgia, the company said on Tuesday.
Arch will close the centres in Cheshire, Connecticut, and New Castle, Delaware, according to a statement by Mark Faford, vice president of investor relations at Arch. In addition, the consolidation will affect 7 employees at a third site in Conley, Georgia.
In all, more than 90% of the employees affected would be offered relocation packages, Faford said.
Arch should complete the consolidation by the end of 2011, the company said in a filing with the US Securities and Exchange Commission (SEC).
The consolidation will cost Arch $6m-8m (€5m-6m) in pre-tax charges, the company said in the filing.
Out of the total, $3m-4m would cover relocation expenses and severance costs; $2m for the impairment of the New Castle facility; and $1m-2m in other costs, Arch said.
The consolidation is part of a larger plan to improve its operating margins, Arch said. The company would provide more details about the plan later in the year.
The margin-improvement plan would also include portfolio management, cost-reduction initiatives and new-product development, Arch said.
($1 = €0.79)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|