Chevron acts to cut back costs
14 February 1994 00:00 [Source: ICB]
CHEVRON CHEMICAL is to implement a major cost reduction plan,
which will result in the reduction of around 475 jobs over the next
three years and cut operating expenses by some $100m/year by
1996.
Company president, John Peppercorn, said the moves were
necessary in light of the slow expected recovery and Chevron
Chemical's 'clearly unacceptable' financial performance in the past
two years.
Around 345 of the job reductions will be effected through asset
divestments, some of which have already been announced. These
involve: Chevron's agricultural businesses, including the closure
of its Maryland Heights, Missouri, agro-chemical plant; the sale of
its fertiliser plant in St Helens, Oregon; and the sale of Chevron
do Brasil's asphalt business.
Other moves of the cost-reduction plan include: the
reorganisation into global regions of the oronite additives
division; the closure of Chevron do Brasil's oilfield chemical
business; completing Chevron's computer system integration and
business redesign project; streamlining and reducing operating
costs at the company's three largest plants in Cedar Bayou and
Orange, Texas, and Belle Chasse, Louisiana; streamlining
transportation, finance and other staff functions; and reducing
some company-sponsored R&D costs.
ICIS Copyright © Reed Business Information 2009
< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 2 November 2009)
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.