Chemours announced today that it will cut approximately 400 positions—about 5% of the company’s global workforce—as part of an ongoing effort to streamline organization and reduce costs.
The headcount reduction is expected to be completed during 2016 and will save Chemours about $50 million annually. The company expects to incur a $45 million charge in the fourth quarter.
The company also completed the strategic review of its reactive metals solutions business and decided to stop production at its Niagara Falls, NY site by the end of December 2016. The Niagara Falls plant produces sodium and lithium, has approximately 200 employees and contractors at the site will be impacted. The closure is expected to improve pre-tax income and adjusted Ebitda by approximately $20 million annually beginning in 2017. In the fourth quarter of 2015, the company will incur cash charges of approximately $17 million for employee-related charges, contract termination, and removal costs.
Additional restructuring and other charges related to decommissioning and site redevelopment are expected to be in the range of $10 million to $15 million and will be incurred during the next two to three years.
“We continue to make significant progress executing against our five-point transformation plan by streamlining our portfolio and our organizational structure. The actions announced today will allow us to focus our resources on our core business segments, operate more efficiently, and strengthen our financial position,” says Mark Vergnano, Chemours president and CEO.
Chemours also says it remains committed to its Belle, WV methylamines site and that it will “take additional actions” to improve the performance of its chemical solutions portfolio. Dow Chemical recently agreed to acquire Chemours’ aniline facility in Beaumont, TX for approximately $140 million in cash.
DuPont spun off Chemours in July.
Source: Chemical Week
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