Chemtura to shut some plants in Europe, cut jobs
Mon Jun 4, 2007 9:10am ET
June 4 (Reuters) - Specialty chemicals maker Chemtura Corp. said it would cut jobs in Europe as it plans to restructure its global supply chain for standard antioxidants, and take related charges in the second and third quarters.
The company, which makes chemicals used in swimming pools and flame retardants, said it plans to close its antioxidant facilities at Pedrengo and Ravenna in Italy during the third quarter. It also proposes to stop manufacturing of two intermediate chemical products at Catenoy, France.
About 125 to 135 employees would be affected at Pedrengo, about 25 to 35 at Ravenna and around 35 at Catenoy, the Middlebury, Connecticut-based company said in a statement.
The steps would help it cut costs and better position for growth in Asia, Middle East and Europe, Chemtura said.
The restructuring, which included some possible investments, would result in pre-tax charges of about $15 million to $20 million and accelerated depreciation of about $30 million to $35 million in the second and third quarters of 2007, the company said.
In May, Chemtura posted a first-quarter loss and had said it agreed to sell its organic peroxides business to German peroxide maker PERGAN GmbH for an undisclosed amount as part of restructuring of its plastic additives portfolio.
In April, the company had said it would cut 620 jobs, or 10 percent of its work force, as part of a restructuring expected to yield annual cost savings of $50 million in 2008.
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