Degussa Engineered Carbons to shutter Texas plant

PARSIPPANY, N.J. (Nov. 4)—Degussa Engineered Carbons will stop production of all rubber blacks at its Baytown, Texas, plant by Dec. 31 and pigment black production by the first quarter of 2003, eliminating about 65 positions. The firm cited slow demand and excess capacity for the measures. "An economic recovery does not seem to be in the cards for 2003, and so we have to take some hard steps to reduce fixed costs and bring them more in line with our sales demand," Jack Clem, president and general manager said. The Baytown plant will be used as a distribution facility and could restart if business conditions warrant. Degussa Engineered Carbons makes furnace blacks at five other plants in Texas, Louisiana and Ohio.