Rentech to close US energy research and demo unit, cut 65 jobs

28 February 2013 14:25  [Source: ICIS news]

HOUSTON (ICIS)--Rentech plans to close its research and product demonstration unit for alternative energies and technologies at Commerce City, Colorado, cutting 65 jobs, the US-based firm said on Thursday.

Rentech's move comes as its does not expect the US market opportunity for alternative energy to improve materially in the next several years, it said.

The company added that it would instead focus on “more immediate growth opportunities within the energy industry that do not rely on new technologies”.

Rentech plans to axe the jobs in the first half of 2013. It will try to sell the product demonstration unit, as well as 450 acres of land in Natchez, Mississippi, it had acquired for the development of an alternative energy facility, it said.

With the closure of the facility, Rentech expects expenses related to its research activities and technologies to fall by about $11.0m (€8.4m) to $10.0m this year.

Rentech also expects to record a one-time $16m impairment charge to intangible assets related to its technologies, it added.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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