Crompton Details $60 Million Restructuring Initiative.Business Editors
GREENWICH Greenwich, borough, Greater London, England
Greenwich (grĭn`īj, grĕn`–), outer borough (1991 pop. 200,800) of Greater London, SE England, on the Thames River. Manufactures include telephone equipment and underwater cable. , Conn.--(BUSINESS WIRE)--Sept. 19, 2001
Crompton Corporation Crompton Corporation, formerly Crompton and Knowles, is a chemical research, production, sales and distribution company headquartered in Middlebury, Connecticut. The company produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water (NYSE NYSE
See: New York Stock Exchange :CK) today announced the closing of six plants, workforce reductions at numerous other facilities and efficiency improvements as major components of a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan expected to yield $60 million in cost improvements by the end of 2002.
The company expects to take a pretax pre·tax
Existing before tax deductions: pretax income.
pretax adj [profit] → vor (Abzug der) Steuern charge of $90 to $110 million as a result of the restructuring, primarily in the third quarter. Less than 50 percent of the charge will be cash and is expected to be disbursed over the next few years.
Approximately $10 million in cost improvements is expected to be achieved during 2001, with the remaining $50 million being accomplished in 2002.
Components of the restructuring inplemented to date include:
- Closing facilities in Naugatuck, CT; Edison, NJ; Newark, NJ; Nutley, NJ; Huddersfield, UK; and Luton, UK; and - Workforce reductions in Gretna and Taft, LA; Memphis, TN; Pawcatuck, CT; Petrolia, PA; Somerville, NJ; Kaohsiung, Taiwan; and certain administrative positions.
These actions, coupled with early retirement and attrition Attrition
The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry.
Notes: programs, are expected to result in elimination of 700 jobs, or approximately 8% of Crompton's worldwide workforce, by the end of 2002.
Crompton has announced the companywide expansion of its Six Sigma Not to be confused with Sigma 6.
Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to its specifications. program, which focuses on improved efficiencies and cost savings and is streamlining various business processes, including transportation and logistics. The combination of these efforts is expected to yield significant cost improvements in 2002, as part of the $60 million program.
"We are taking the types of decisive actions needed to reduce our cost base and enhance our competitive position for the future," said Vincent A. Calarco, chairman, president and chief executive officer of Crompton Corporation. "Our objective is to achieve the lowest cost position in each of our businesses while maintaining the highest standards of customer service. We have focused our efforts on areas where we can reap significant savings while ensuring an uninterrupted supply of products and services to customers."
Crompton Corporation is a $3 billion producer and marketer of specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. and polymer products providing the solutions, service and value our customers need to succeed. More information about the company can be found at www.cromptoncorp.com.
Certain statements made in this release are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, expected cost savings, general economic conditions, energy and raw material prices and availability, production capacity, changes in interest rates and foreign currency exchange rates, changes in technology, market demand and customer requirements, and other risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission. These statements are based on currently available information and the company's actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this release was issued and such information will not necessarily be updated by the company.