BEACHWOOD, Ohio—Omnova Solutions Inc. is planning to change its business reporting structure, according to a Jan. 26 news release.
The specialty chemicals and polymer company expects to finalize these changes and start reporting under the new segments in the second quarter of fiscal year 2017.
One of the new reporting segments will focus on the company's specialty businesses; the other will focus on its "more mature" businesses, the release stated. The businesses in the existing Performance Chemicals and Engineered Surfaces reporting segments will be folded into these new ones.
The specialty segment will include the company's "higher growth business lines," the release stated, which likely will include everything from coatings to nonwovens to oil and gas additives. The "more mature" segment likely will include product lines such as paper and carpet chemicals and coated fabrics, the release noted.
Omnova also is implementing a "One Omnova" support structure in areas such as sales, operations and supply chain, which the release states will "reduce complexity and drive consistency" throughout the company by using a standardized business system. It's expected to lead to "significantly improved performance and provide modest cost savings," the company said.
A document filed with the U.S. Securities and Exchange Commission noted that the position of president of engineered surfaces was being eliminated as part of the restructuring. That means David H. Maynard will be leaving the company on March 17. Since this is an "Involuntary Separation from Service," Maynard will be eligible for benefits including 12 months of continued salary and health and life insurance benefits.
A message left for the company for more information about the possible effects the restructuring and new support structure could have on jobs was not immediately returned.