Chemours Cuts Job, Shuts New York Plant
Chemours has announced more job losses and a further plant closure as it continues to take steps to transform and optimize its business.
In the DuPont spin-off’s latest move, some 400 jobs, or roughly 5% of its total global employee and contractor headcount, will be cut. The reduction, for which Chemours will incur a charge of about $45 million in Q4 2015, is expected to be completed during 2016 and is planned to save the company around $50 million annually.
In addition, and following a strategic review of its Reactive Metals Solutions (RMS) business, management has decided to halt production at the production facility in Niagara Falls, New York, USA, by the end of December 2016. The closure will affect approximately 200 employees and contractors at the site and is expected to boost annual pretax income and adjusted EBITDA by around $20 million from 2017.
Chemours will take a cash charge of around $17 million in Q4 2015 for employee-related costs, termination of contracts and removals. Additional restructuring and other charges related to plant decommissioning and site redevelopment are anticipated to be between $10-15 million during the next two to three years.
As part of its portfolio optimization, Chemours said it continues to be committed to the methylamines manufacturing site in Belle, West Virginia. The site will remain part of the Chemical Solutions business and the Delaware-based company expects to take additional steps to improve its performance and financial contribution.
CEO Mark Vergnano said the actions will allow Chemours to focus its resources on core business segments, operate more efficiently and strengthen its financial position. In November, the company announced the sale of its aniline plant in Beaumont, Texas, to Dow Chemical as it strives to save $350 million by 2017.
The Chemours transformation plan, announced in August of this year, centers on five elements: reducing structural costs; growing market positions; refocusing investments; optimizing the portfolio; and enhancing the organization.