Chemtura Announces Restructuring to Improve Performance, Accelerate Growth, Better Serve Customers
Chemtura Corporation announced that it is implementing an industry-based business model in order to improve performance and accelerate growth. By focusing on end-use markets, Chemtura believes it will be better able to serve current customer needs, anticipate their future requirements and target rapidly growing industry segments.
Chemtura will simplify its financial reporting structure from the current six units to four each led by a group president:
- Polymer Additives, which will include the former Plastic Additives and Flame Retardants business units and will be led by Anne Noonan;
- Performance Specialties, which will include the former Petroleum Additives, Urethanes, Optical Monomers and Fluorine Specialties and will be led by Bob Wedinger;
- Consumer Products, led in the interim by Kim Nicholson; and
- Crop Protection, led in the interim by Greg McDaniel.
Organizational streamlining is expected to result in a reduction of the company's global workforce by approximately 10 percent (620 positions), resulting in an annualized cost reduction of approximately $50 million beginning in 2008. The company expects to record charges related to the restructuring in the range of $25-$35 million. Most affected personnel are expected to be notified by the end of the second quarter.
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