Chemours plans 400 job cuts; close Niagra Falls plant

Chemours plans 400 job cuts; to close Niagra Falls plant

7:46 AM, 1st December 2015
Chemours plans 400 job cuts; to close Niagra Falls plant
Mark Vergnano, president and CEO, Chemours. (File photo)

WILMINGTON, US: The Chemours Company said that it will cut approximately 400 positions, about 5 percent of its global workforce, as part of its ongoing efforts to streamline the organization worldwide and reduce costs.

As a result, the company will incur a charge of approximately $45 million in the fourth quarter of 2015. The headcount reduction, expected to be completed during 2016, will affect business lines and functions and is estimated to save the company approximately $50 million annually.

The company also completed the strategic review of its reactive metals solutions (RMS) business and decided to stop production at its Niagara Falls, New York site by the end of December 2016.

The Niagara Falls plant has approximately 200 employees and contractors who will be impacted by this action.

This site closure is expected to improve pre-tax income and Adjusted EBITDA by approximately $20 million annually beginning in 2017. In the fourth quarter of 2015, the company will incur cash charges of approximately $17 million for employee-related charges, contract termination, and removal costs.

Additional restructuring and other charges related to decommissioning and site redevelopment are expected to be in the range of $10 million to $15 million and will be incurred during the next two to three years.

“We continue to make significant progress executing against our five-point transformation plan by streamlining our portfolio and our organizational structure. This will allow us to focus our resources on our core business segments, operate more efficiently, and strengthen our financial position,” said Mark Vergnano, president and CEO, Chemours.

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