PolyOne to close plants, cut jobs
Monday July 28, 9:56 am ET
PolyOne to close 8 production facilities, cut 150 jobs in restructuring
CLEVELAND (AP) -- Polymer maker PolyOne Corp. said Monday it will close eight production facilities and cut 150 jobs, citing the economic downturn and higher costs for raw materials and energy.
PolyOne said the changes will result in one-time charges of $31 million for severance payments and asset write-downs. The company also expects to invest $12 million at its remaining locations as it shifts operations from the closing plants.
In total, the changes will lead to pretax annual savings of $17 million, or 12 cents per share.
The company will close seven facilities in North America and one in the United Kingdom over the next nine months, moving production to PolyOne's 30 remaining plants. It does not expect the restructuring will disrupt its business.
Chief Executive Officer Stephen D. Newlin said declining demand in sectors such as housing and automotive contributed to the company's decision to make the cuts.
"The recent unprecedented increases in raw material and energy costs, and longer-term fundamental changes in the global economy were critical factors in our decision-making," he said.
PolyOne makes specialized polymer materials that include colorants, specialty coatings and resins, and vinyl products.
Source: Associated Press
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