Rohm and Haas to close plants in cost-saving restructure
US-based speciality chemicals and materials company Rohm and Haas has initiated an 18-month restructuring initiative designed to save around US$35m in costs.
US-based speciality chemicals and materials company Rohm and Haas has initiated an 18-month restructuring initiative designed to save around US$35m in costs.
The move, which affects both its chemical and electronic materials divisions, includes the closure or partial shutdown of five manufacturing facilities and an r&d site. Some 400 jobs are to be cut, primarily in Europe, and the powder coatings plant in Aldrige, UK is one of those scheduled for closure.
'The manufacturing realignments within several of our chemical businesses reflect the lower demand in many of their European markets, as well as the need to improve operating efficiencies and reduce excess capacity in the region,' said Pierre Brondeau, vice-president and group business executive, Electronic Materials, and European regional director. He added, 'The Electronic Materials realignment reflects the continued migration of some of its markets, particularly the printed circuit board market, from Europe and North America to Asia-Pacific.'
The company also updated its fourth quarter 2005 guidance, noting that stronger demand in higher margin businesses has improved earnings over the previous year. The company had annual sales of approxi-mately $7.3bn in 2004.