Chemical companies tighten their belts

Facing uncertainty due to the coronavirus pandemic, chemical companies are taking steps to conserve cash. Eastman Chemical is reducing its 2020 capital spending from the $450 million–$475 million originally planned to $325 million–$375 million. The carbon black company Orion Engineered Carbons and the inorganic specialties maker Elementis are both suspending dividends. “Our focus remains on what we can control—namely, active cost and cash management,” says Elementis CEO Paul Waterman. Meanwhile, petrochemical maker Westlake Chemical is borrowing $1 billion under a line of credit to maintain “ample financial flexibility.”