Chemtura Corporation, a global manufacturer and marketer of specialty products, is set to implement a restructuring initiative to reduce cash fixed costs by approximately US$50 mln due to a deteriorating macroeconomic environment. According to a company statement, it has witnessed order reductions particularly in its Polymer Additives and Performance Specialties business segments serving electronic, polyolefin, building and construction, and general industrial applications.
The initiative will include reducing its professional and administrative staff by approximately 500 people (20% of total staff). The cash cost of these actions are provisionally estimated to be in the order of US$15 mln to US$20 mln and will be incurred over the next three quarters. The Company will take a restructuring charge in the Q4 to record the cost of these initiatives. Further, the Company is currently streamlining 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.