PolyOne Corp. closing 6 plants, cutting 250 jobs in realignment
The restructuring, expected to be completed by the end of 2014, should generate annualized pre-tax savings of approximately $25 million in 2015.
CLEVELAND—Specialized plastics and coatings company PolyOne Corp. is closing six manufacturing facilities in North America and cutting about 250 jobs.
“No Canadian facilities are among the six referenced in today’s announcement,” said Kyle Rose, a company spokesperson.
PolyOne has five Canadian locations listed on its website, two of which are identified as manufacturing plants, but these all appear to be safe for now.
The company says this realignment is targeting “synergy-related” cost savings gained from its US$393-million acquisition of engineered plastics maker Spartech Corp. last March.
The restructuring, expected to be completed by the end of 2014, should generate annualized pre-tax savings of approximately $25 million in 2015. Cash costs are expected to hit $45 million over the next 12-18 months, primarily related to severance, asset relocation and additional capital investment.
“These actions are entirely consistent with our previously announced plans to integrate PolyOne and Spartech and to accelerate our specialty transformation,” said Stephen D. Newlin, chairman, president and CEO.
Production at the closing North American facilities will be shifted to other PolyOne locations.
“We are committed to delivering at least $65 million of synergies from the Spartech acquisition and $0.50 of EPS accretion upon full synergy capture,” Newlin added.
PolyOne Corp. provides specialized polymer materials, services and solutions and posted 2012 revenues of $2.9 billion.