BEACHWOOD, Ohio—Omnova Solutions Inc. has launched a cost-cutting plan that includes elimination of manufacturing at a plant in Georgia and cutting production at a site in Ohio.
Its aim with the overall project is to reduce operating expenses by $14 million to $17 million annually.
The company's goal with what it called a footprint redesign is to reach that mark by 2017.
Omnova will shut down the manufacturing end of its Calhoun, Ga., facility and shift about 135 million wet pounds of styrene butadiene latex for the carpet and paper markets to its very modern, state-of-the-art complex in Green Bay, Wis., the firm said.
Vinyl pyridine latex manufactured in Calhoun for tire cord applications will be consolidated into other plants to continue serving customers from multiple sources of supply, including overseas, within the company, according to a spokeswoman.
Cutting production at the Georgia site, along with product and process transitions between facilities, ultimately could affect nearly 40 employees who make up the production crew at the plant, she said.
“We regret the impact these actions will have on our employees, and we will provide assistance to help those affected,” Chairman and CEO Kevin McMullen said.
Though difficult, he said, “we know this is a path we must take to bring our business in line with the market realities we face, while simultaneously improving performance and positioning the company for stronger and more sustainable profitable growth.”