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Companies scale back coatings

July 31, 2006 | A version of this story appeared in Volume 84, Issue 31

Rohm and Haas wants to sell its automotive coatings business by the end of the year. The company says the 592-employee division, which operates plants in Illinois and Germany, has been hurt by the slump in U.S. auto sales. The division makes and sells exterior automotive coatings such as adhesion promoters, pigmented base coats, and clear coats, as well as both waterborne and solvent-based coatings for auto interiors. The business had net sales in 2005 of approximately $109 million. Rohm and Haas reported a $26 million loss in the automotive coatings business in the second quarter of 2006, compared with a $6 million profit a year earlier. Meanwhile, DuPont says its plan to restructure its performance coatings business should be complete by the end of the third quarter of 2007. Announced in March, the plan is designed to reduce annual costs by $165 million. A lab in Troy, Mich., and the Hellac Laboratory, in Germany, have been closed and merged with facilities in Mount Clemens, Mich., and Wuppertal, Germany. Labor discussions have been completed that will lead to the closure of sites at Rubi and Polinya, in Spain, and Breda, in the Netherlands.


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