02 May 2012 16:01 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura plans to close its antioxidants plant at Pedrengo, near Milan, Italy, as part of a restructuring measure to lower costs, the CEO of the US-based specialty chemicals producer said on Wednesday.
Chemtura will switch production of the antioxidants made at Pedrengo to a toll manufacturer and to other Chemtura plants, Rogerson said.
“The closure will reduce the costs of the products and provide greater flexibility in matching production volumes to customer needs,” he added.
He did not say how many employees may be affected.
The plant closure and additional measures to improve the performance of some of Chemtura’s corporate functions is expected to cost about $40m (€30m).
Chemtura expects to record a $30m pre-tax charge in the second quarter of 2012 to account for severance, asset depreciation and other costs related to the restructuring, with the balance of the cost to be expensed through 2013.
In the first quarter of 2012, Chemtura’s industrial performance products segment recorded a 7% year on year fall in sales to $313m, partly because of weakness in its antioxidants business.
The weakness was due to lower end-demand in the polyolefins market, Rogerson said. However, Chemtura is seeing some recovery in the business, especially in China, he added.
($1 = €0.76)
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