28 May 2013 14:17 [Source: ICIS news]
HOUSTON (ICIS)--US plastic compounds and resins firm A Schulman announced further restructuring plans for its Europe assets on Tuesday, and it said it would sell a business in Australia.
A Schulman said the restructuring in Europe, coming on top of earlier measures, should yield an additional $4m/year (€3m/year) in savings. Schulman added that the restructuring would result in job cuts, but did not say how many jobs will be affected.
"Given the ongoing poor economic environment in Europe, we felt it was necessary to continue our current restructuring efforts and expense reductions to better align with market demand," said chief operating officer Bernard Rzepka.
Over the past three years A Schulman already implemented a series of cost reduction programmes at its business in Europe, resulting in $6m/year in savings. The latest measures will bring savings to about $10m/year, it said.
In addition, A Schulman said it would seek to sell its rotational compounding business in Brisbane, Australia.
“We have been challenged to sustain profitability in the smaller Australian market, despite the strategic restructuring programmes we have implemented in recent years," said CEO Joseph Gingo. "After careful consideration, we have committed to finding a suitable buyer for this business.”
The Australian business generated revenues of about $25m last year. A Schulman expects to complete the sale within six to twelve months, it said.
($1 = €0.77)
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