Chemtura Will Cut Jobs And Close Plants | Chemical & Engineering News
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Web Date: June 5, 2007

Chemtura Will Cut Jobs And Close Plants

Weak profitability in polymer antioxidants forces shutdown of three European facilities
Department: Business
Noonan
Credit: Chemtura
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Noonan
Credit: Chemtura

Chemtura plans to close its polymer antioxidant facilities in Pedrengo and Ravenna, Italy, and end production of antioxidant intermediate chemicals at a plant in Catenoy, France, that supplies the Pedrengo facility. Between 185 and 205 jobs will be affected.

Anne P. Noonan, president of Chemtura's polymer additives group, explains that productivity gains at the Italian units "have been overshadowed by increasing operational and raw material costs" that are pushing profits "below expectations."

The shutdowns will affect 125–135 employees at Pedrengo, 25–35 at Ravenna, and around 35 at Catenoy. To account for severance costs, Chemtura plans to take a pretax charge against earnings of between $15 million and $20 million.

Noonan says Chemtura will continue to supply customers with standard antioxidants, which are used to increase polymer strength and durability, through agreements with local suppliers and through its other antioxidant facilities, including ones in the U.S., Germany, Saudi Arabia, and South Korea.

 
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