Home / Knowledge / News / Textiles / PolyOne realigns manufacturing assets
PolyOne realigns manufacturing assets
29
Jul '08
As a next step in its strategic transformation, PolyOne Corporation announced that it is realigning certain of its manufacturing assets, primarily in North America.

The decision to realign assets is a result of the Company's ongoing focus on both the operational excellence and specialization components of its transformation strategy. This realignment is designed to enable the Company to improve the competitiveness of its operations and supply chain across many platforms and businesses, consistent with current and anticipated customer requirements.

The impact of these actions will be to enhance the Company's long-term performance, while helping to mitigate the effects of the current economic downturn and the increases in raw material and energy costs.

Over the next nine months, the Company will close certain production facilities, including seven in North America, and one in the United Kingdom, resulting in a net reduction of approximately 150 positions. Production at the affected facilities, as well as several manufacturing lines, will be moved to a limited number of the Company's more than 30 remaining plants. PolyOne expects no disruption of service, due to the Company's focus on improved product delivery systems and inventory management.

“As part of our transformation process, we are committed to driving operational excellence on a global basis, which includes improving service and efficiency throughout our supply chain,” said Thomas J. Kedrowski, senior vice president, operations and supply chain.

“After conducting a thorough review of our entire operation, our business teams identified opportunities to further align our capacity and production assets to improve the effectiveness of our global manufacturing footprint. These changes also reflect our focus on specialization, which is shifting our portfolio away from non-value-added commodity applications toward more specialized solutions.”

Stephen D. Newlin, chairman, president and chief executive officer, said, “The recent unprecedented increases in raw material and energy costs, and longer-term fundamental changes in the global economy were critical factors in our decision-making. Declining demand in markets such as housing and automotive has created a timely opportunity to remove excess capacity and address supply chain efficiencies as important steps in mitigating the effects of the current economic conditions on PolyOne and its customers.”

As a result of these actions, PolyOne expects to incur one-time charges of approximately $31 million, of which approximately $18 million are expected to be non-cash. These one-time charges will include costs related to severance and asset write-downs, which will be included in the Company's financial results over the next three quarters.

The Company also expects to invest approximately $12 million in additional capital expenditures at its remaining locations to support these changes. The Company expects these actions to generate pre-tax savings of $17 million ($0.12 per share after tax), on an annualized basis.

Newlin said, “Difficult decisions like these are taken very seriously. After thorough study, it was determined that this capacity reduction is needed to improve our near-term operating efficiency while advancing our longer-term strategic position. We understand the impact of this announcement on affected employees, their families and local communities and are committed to handling these moves with great sensitivity.”

PolyOne Corporation

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search