Solutia Confirms Cessation of Production at Astaris' Elemental Phosphorus Facility
Solutia Inc. (NYSE: SOI) confirms that Astaris LLC, a 50/50 joint venture between Solutia and FMC Corporation, will cease production at its remaining elemental phosphorus production facility, located in Pocatello, ID, by the end of 2001. The decision to conclude production at this facility is expected to improve Astaris' cost position by switching feed stocks to lower cost purified phosphoric acid.
Solutia expects its share of the after-tax charge associated with the actions at the facility to be in the range of $40 million to $45 million. Approximately 70 percent of the charge represents cash obligations of Astaris, specifically closure costs, employee severance and contractual commitments, which will be paid out over the next five to six years. The remainder of the charge is comprised of non-cash items. Solutia will have no additional responsibility for long-term costs and actions, including environmental remediation of the Pocatello site.
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