MOSCOW (MRC) -- 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, as per the company's press release.
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 USD45 million. The company will book USD110 million in charges in the third quarter related to the closures, with another USD75 million to USD85 million in restructuring and severance charges over the next few years.
The announcement comes two weeks after Chemours announced plans to cut USD350 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.
As MRC informed before, DuPont has announced that the US Securities and Exchange Commission has declared effective the Registration Statement on Form 10 of The Chemours Company. The Registration Statement on Form 10 includes information regarding the business and spin-off of Chemours, which is expected to be completed on July 1, 2015. In addition, on June 12, 2015, the New York Stock Exchange authorized Chemours for listing on the exchange, with "regular way" trading to commence on July 1, 2015.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC