Albemarle exit phosphorous flame retardants business

Albemarle to exit phosphorous flame retardants business

4:58 AM, 18th May 2012
Albemarle to exit phosphorous flame retardants business
Luke Kissam, CEO, Albemarle.

BATON ROUGE, US: Albemarle Corporation plans to exit its existing phosphorous flame retardants business, in order to restructure its business portfolio and address underperforming assets. Albemarle currently produces phosphorus flame retardants at its Avonmouth, UK and Nanjing, China manufacturing sites. The proposal to exit the business and cease operations at the Avonmout site is subject to consultation with its employees, which has begun. In addition, the process to cease operations at the Nanjing, China site has also begun.

As a consequence of these plans, the company would expect to incur a one-time after-tax accounting charge in the range of $80 million to $95 million in the second quarter of 2012, which would include costs such as severance, asset write-downs and closure costs. Once these actions are completed, including a restructuring programme intended to eliminate costs allocated to the phosphorus business, annual earnings per share should improve by $0.10 to $0.15 per share in 2013.

“One of the fundamental drivers of Albemarle’s future growth is our ability to manage our business portfolio and show discipline in addressing underperforming assets or product lines. It has become clear that our current phosphorus business and product lines are not strategically aligned with Vision 2015’s growth plans. We recognize the impact a proposed closure would have on our employees, their families and the communities where they live, and we will strive to minimize this impact,” said Luke Kissam, CEO, Albemarle.

© WOC News

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