CLEVELAND (Oct. 30)—PolyOne Corp. will close its DeForest, Wis., and Wynne, Ark., rubber compounding plants by year-end and lay off 230 employees in a bid to reduce costs and bring capacity in line with demand. The facilities are part of PolyOne's elastomers and performance additives business unit, which PolyOne put up for sale Oct. 22 as part of general restructuring. The moves will result in one-time costs of about $15 million but are expected to yield annual pretax savings of $7.5 million, PolyOne said. The firm intends to redistribute production of compounded elastomers and dispersed rubber chemicals from the affected to factories to plants in Burton, Ohio; Dyersburg, Tenn.; and Kennedale, Texas. PolyOne Chairman and CEO Thomas A. Waltermire blamed the unit's falling profitability on raw material price inflation, increased offshore competition and the relocation of key customers out of PolyOne's geographic reach.
PolyOne to close 2 rubber compounding plants
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].