Arkema announce cost trimming measures to cope with demand decline

France's leading chemical maker and global major, Arkema has warned of a 15% year-on-year decline in sales and a 9% reduction in EBIDTA for for Q4-08 owing to the considerable customer destocking activity and order cancellations observed since mid-October. As a result, the company will streamline production with current level of demand by actions including temporary shutdown or reduction of production at around 40 sites for managing cash flow and controlling its general and administrative costs. Particularly, the customers in automotive and construction markets have engaged in order cancellations reducing volumes of several product lines such as PVC, PMMA and functional additives. Meanwhile, Arkema is accelerating the implementation of its fixed cost reduction programme of EUR 500 mln between 2005 and 2010, of which more than EUR 330 mln by the end of 2008. Further, the company is set to announce a programme to reduce variable and fixed costs by EUR 50 mln by the end of 2010.
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