15 July 2013 16:23 [Source: ICIS news]
HOUSTON (ICIS)--US-based Cytec Industries has completed the sale of the former Umeco distribution product line to UK-based Cathay Investments for £5.5m ($8.3m, €6.4m) and plans to consolidate its operations in the US, the specialty chemicals producer said on Monday.
Cytec acquired the UK-based composite and process materials firm Umeco in mid-2012 to join its industrial materials segment. In April, Cytec announced plans to rearrange its operating segments, including aerospace materials and industrial materials.
The sale allowed Cytec to exit and shut down its process materials joint venture in China, which was acquired as part of the Umeco acquisition.
“These actions are aligned with focusing the industrial materials business on improving its existing business in its targeted growth markets,” said William Avrin, vice president of corporate development and president of industrial materials.
Additionally, Cytec intends to move all Umeco production operations from the Costa Mesa, Adelanto and Huntington Beach sites in California to its locations in Winona, Minnesota, and Tulsa, Oklahoma. Final closure of the facilities is expected by mid-2015.
The initiative will cost the company about $27m, but annual savings are expected to be $3m-4m.
“After a thorough analysis, this initiative provides a clear path to creating a production foundation establishing high standards for quality and customer service to support growth and improved profitability of aerospace interior materials, specialty composite materials and a variety of industrial materials,” said William Wood, president of aerospace materials.
($1 = €0.77, $1 = £0.66)
Follow Tracy on Twitter
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections