Koppers close Clairton chemical plant; cuts 52 jobs

Koppers to close Clairton chemical plant; cuts 52 jobs

7:08 AM, 16th January 2016
Koppers to close Clairton chemical plant; cuts 52 jobs
Leroy Ball, president and CEO, Koppers Inc. (File photo)

PITTSBURGH, US: Koppers Inc, a wholly-owned subsidiary of Koppers Holdings Inc said that it plans to substantially discontinue activities at its tar plant located in Clairton, Pennsylvania.

The decision, which will affect 52 employees, was driven by the continued secular shift of primary aluminium production to lower-cost energy regions of the world, which has contributed to the overcapacity in the tar distillation industry. Recently announced closures and curtailments of significant capacity in the US aluminium market have only exacerbated the situation.

The company plans to ramp down production at the Clairton facility over the next six months as it transitions production to other Koppers-owned facilities in both the US and Europe and has targeted a date of mid-2016 for discontinuing activities at the Clairton plant.

The company expects this action to result in pre-tax charges to earnings of $17 to $23 million through the end of 2019, which includes $7 to $10 million of non-cash impairment charges that are expected to be recorded in the fourth quarter of 2015.

The pre-tax cost savings related to discontinuing activities are estimated to be approximately $4 million for the year ended December 2016 before reaching an annual run rate of approximately $14 million in 2017 and beyond.

“In addition to the $14 mn of expected annualized fixed cost avoidance benefits from closing Clairton, we also expect to realize increased profits on certain European products that can be diverted into the US market at a higher value. Those benefits, in combination with lower raw material costs, are expected to more than offset the profitability that will be lost due to the reduction in demand of carbon pitch from the US aluminium industry, which is expected to result in an approximate negative $40 mn top-line impact on our CMC segment in 2016,” said Leroy Ball, president and CEO, Koppers.

© Worldofchemicals News

0 Comments

Login

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


HPCL-Gail to set up a petrochemical complex in Andhra Pradesh, India

VISAKHAPATNAM, INDIA: A Greenfield petrochemical complex will be set up jointly by Hindustan Petroleum Corp Ltd (HPCL) &Gail India Ltd (Gail) in A ...

Read more
Saint-Gobain to expand flat glass capacity in India

CHENNAI, INDIA: French multinational corporation Saint-Gobain said that it will invest around€135 million (about Rs 975 crores) to expand its fla ...

Read more
Praxair enters into nitrogen supply agreement with Toray in US

DANBURY, US: Praxair Inc said that it has signed a long-term contract to provide nitrogen to Toray Carbon Fibers America Inc, a US subsidiary of Toray ...

Read more
KBR acquires Chematur subsidiaries in US, Germany and Finland

HOUSTON, US: KBR Inc said that it has acquired Weatherly Inc (Weatherly), Plinke GmbH (Plinke), and Chematur Ecoplanning Oy (Ecoplanning) from Chematu ...

Read more
Kisco acquires Specialty Coating Systems

INDIANAPOLIS, US: Kisco Ltd said that it has acquired Specialty Coating Systems Inc (SCS), a global leader in Parylene coating services and technologi ...

Read more
Frutarom continues buying spree; acquires US-based ingredients firm

HERZLIYA, ISRAEL: Frutarom Industries Ltd said that it continues its momentum of acquisitions and the implementation of its rapid and profitable growt ...

Read more
www.worldofchemicals.com 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