Crompton Announces $40 Million Cost-Reduction Initiative

23-Oct-2003

Crompton Corporation announced cost and workforce reductions designed to streamline operations, strengthen the company's competitive cost position and provide a strong platform for future growth. The restructuring initiative is expected to result in $40 million in annual pretax savings in 2004.

The cost-reduction program is expected to result in a total cash charge of approximately $15-$18 million, of which $10.4 million was recognized in the third quarter with the balance expected to be recognized primarily in the fourth quarter of this year.

Crompton is right sizing its support structure following the July 31, 2003 divestiture of its organosilicones business to General Electric Company, which resulted in the transferring of approximately 1,200 organosilicones employees to GE. On July 31, 2003, Crompton also acquired GE's Specialty Chemicals business, including 230 employees who are located primarily at a plant in Morgantown, West Virginia.

"To remain an efficient, effective and competitive organization in the global marketplace, we are being proactive in adjusting our cost structure following the OSi divestiture," said Vincent A. Calarco, Crompton's chairman, president and chief executive officer. "We have reassessed our portfolio to ensure the proper allocation of resources to those businesses positioned for future growth."

Crompton's 5,700-person global workforce will be reduced by approximately 375 jobs, or seven percent.

With the acquisition of GE's Specialty Chemicals business, Crompton has become one of the world's largest plastics additives producers and marketers. "Combining our plastics additives expertise and broad portfolio with our polymer-processing capabilities gives us a distinct position in our industry," Calarco said. "Our job now is to capitalize on it.

https://www.chemeurope.com/en/news/30309/crompton-announces-40-million-cost-reduction-initiative.html