Chemtura to realign company
Tuesday January 20, 12:31 pm ET
Chemtura establishes new groups to improve operations in weak economy
MIDDLEBURY, Conn. (AP) -- Specialty chemicals maker Chemtura Corp. said Tuesday it has realigned the company to improve operations in a weakening economy.
The Middlebury, Conn.-based company also said it will reduce cash fixed costs by about $50 million and generate cash through capital improvements, reduced capital spending and potential asset sales.
Chemtura, which also makes crop protection and pool, spa and home-care products, has established two groups, performance products and engineered products, and an executive committee reporting to the CEO.
"The realignment of our product businesses is targeted on driving improved operational performance despite the difficult economic conditions confronting the global economy and our industry," said Craig A. Rogerson, president, chairman and chief executive.
The realignment positions the company's executives to work on specific needs of each of Chemtura's businesses and better balance workloads, the company said.
On Dec. 30, Chemtura said its lenders agreed to waivers on its loan agreements, as slowing business led it to predict an operating loss for the fourth quarter. Chemtura said its lenders permanently shrunk its senior credit facility to $500 million from $740 million, and it used its inventory as collateral.
Shares fell 8 cents, or 7.7 percent, to 96 cents in early afternoon trading.
Source: Associated Press
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