Middlebury, Connecticut
December 12, 2008
Chemtura Corporation (NYSE:CEM) advised today that in light
of the change in economic conditions, it is implementing a new
restructuring program to reduce fixed costs.
Like many companies, Chemtura has seen order volumes decline as
its customers experience, or anticipate, reductions in demand
from the industries they serve. These order reductions primarily
relate to Chemtura's Polymer Additives and Performance
Specialties business segments in electronic, polyolefin,
building and construction, and general industrial applications.
In light of reduced demand and with the expectation that the
implementation of an upgraded management system will improve the
efficiencies of business and management processes, Chemtura will
implement a new restructuring initiative to reduce cash fixed
costs by approximately $50 million. This initiative involves a
worldwide reduction in its professional and administrative staff
by approximately 500 people, which represents a reduction of
about 20 percent of the professional and administrative
population. The cash cost of these actions are provisionally
estimated to be in the order of $15 million to $20 million and
will be incurred over the next three quarters. The Company will
take a restructuring charge in the fourth quarter to record the
cost of these initiatives.
The Company is also adjusting its plant production rates to
align with customer demand and its inventory reduction goals,
and, as a result, is modifying work hours, furloughing or
reducing production personnel as required. These actions will
create significant additional cost reductions.
Chemtura Corporation (NYSE:CEM), with 2007 sales of $3.7
billion, is a global manufacturer and marketer of specialty
chemicals, crop protection products, and pool, spa and home care
products. Learn more about us on our Web site at
www.chemtura.com |
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