US Ferro may look into consolidation of manufacturing plants

25 April 2013 17:12  [Source: ICIS news]

HOUSTON (ICIS)--Ferro may look at consolidating its global manufacturing plants as part of its current valuation growth plan, the CEO of the US-based specialty chemical producer said on Thursday.

“It would be consistent to think that further consolidation would occur,” said Peter Thomas during a conference call about the company’s Q1 2013 earnings.

Such consolidations would not occur in the “near term”, Thomas said.

The CEO then pointed out that the company has six plants globally making pigments. “That has to be addressed at some point,” he said.

Ferro is targeting sales growth of 4-5% through 2015 as part of its valuation growth plan, which comes at a time when US plastics and resins maker A Schulman has made a bid for the company.

Ferro called A Schulman’s bid earlier this year of $6.50/share for the company as a “low-ball” offer. A Schulman has rejected that notion but has said it would be willing to adjust the offer following due diligence investigations into Ferro’s financials.

($1 = €0.77)

By: Jeremy Pafford
+1 713 525 2653

AddThis Social Bookmark Button

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.

Printer Friendly

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