Chemtura Corporation announced restructuring plan reduce $50 million Approx

Chemtura announces restructuring plans

9:42 AM, 17th November 2014
Chemtura Corporation

PHILADELPHIA, US: Chemtura Corporation announced a restructuring plan to reduce manufacturing conversion costs by approximately $50 million, or about 10 per cent annually, eliminate approximately $15 million of annual stranded costs arising from the previously announced sale of the Chemtura AgroSolutions business, and reduce selling, general and administrative costs (SG&A) by at least $12 million annually.

Despite the success of many of Chemtura’s improvement initiatives, the Company faces continuing weak demand conditions in some of the market applications it serves, as well as excess capacity in bromine and certain organometallics. While the

Company expects the bromine industry and electronics market to recover and grow to new heights that growth may not occur in the coming year.

“Excess industry capacity in bromine and certain organometallics combined with continuing volatility in certain markets we serve has restricted our ability to achieve the targeted improvement in results. To meet our expected performance improvement in 2015, we are taking steps to address these challenges by accelerating initiatives to reduce our manufacturing costs and SG&A expenses, in addition to the elimination of stranded costs arising from the sale of our agrochemicals business,” said Craig A Rogerson, Chairman, President and Chief Executive Officer, Chemtura.

“However, it is our responsibility to create the committed value in 2015. We believe the combination of our cost reduction actions and the investments we have made will enable us to deliver progressive performance improvement in 2015 without having to rely on recovery in demand from markets such as electronics or an improvement in our pricing levels,” said Rogerson.

Related News - Platform Specialty to acquire Chemtura AgroSolutions for $1 billion


© Worldofchemicals News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Toray to supply carbon fiber to Boeing for 777X aircraft

TOKYO, JAPAN: Toray Industries, Inc has agreed in principle to supply TORAYCA prepreg for the production of the new 777X aircraft by The Boeing Compan ...

Read more
Hazardous gas leak at DuPont in Houston, US kills four

HOUSTON, US: Four Texas workers died and a fifth was hospitalized on 15 November 2014 after a hazardous gas, methyl mercaptan, leak at a DuPont chemic ...

Read more
US, China sign climate change deal

BEIJING, CHINA: In a historic climate change deal, US President Barack Obama and Chinese President Xi Jinping announced both countries will curb their ...

Read more
Artificial retina could help with vision loss

WASHINGTON DC, US: The loss of eyesight, often caused by retinal degeneration, is a life-altering health issue for many people, especially as they age ...

Read more
Newly developed molecule capable of binding to greenhouse gases

HOUSTON, US: A team of University of Houston chemistry researchers have developed a molecule that assembles spontaneously into a lightweight structure ...

Read more
Novel Nano-Medicine for Osteoporosis

BANGALORE, INDIA: In a new study, a group of researchers from Al-Ameen College of Pharmacy and Indian Institute of Science (IISc), Bangalore has devel ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X