Chemours to Cut Titanium Dioxide Capacity, Close Delaware Plant
20 August 2015 - 2:59PM
Dow Jones News
By Chelsey Dulaney
Chemours Co., the performance-chemicals company spun off from
DuPont Co. in July, said Thursday that it will close its titanium
dioxide plant in Delaware as it struggles with weak titanium
dioxide pricing.
The Edge Moor plant, which makes titanium dioxide for the paper
industry, has 200 employees and 130 contractors. Chemours said it
would redeploy employees where possible.
Chemours said it would also shut down a titanium dioxide line at
its plant in New Johnsonville, Tenn. Together, the moves will cut
its titanium dioxide capacity by 150,000 metric tonnes.
Chemours expects the closures to reduce annual costs by $45
million. The company will book $110 million in charges in the third
quarter related to the closures, with another $75 million to $85
million in restructuring and severance charges over the next few
years.
The announcement comes two weeks after Chemours announced plans
to cut $350 million in costs by 2017 and review options for its
chemical solutions business.
Chemours's products are used in things like plastics, coatings
and air conditioning. Its brands include Teflon, Ti-Pure and
Krytox. The company has struggled lately with weak titanium dioxide
pricing and currency headwinds.
Shares of Chemours, down 21.9% in the past month, fell 1.1% to
$9.65 a share in premarket trading.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 20, 2015 08:44 ET (12:44 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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