BEACHWOOD, Ohio—Omnova Solutions Inc. plans to close a plant in Wisconsin and transfer the work to a location in Mogadore, Ohio.
The specialty chemicals and materials company will close a styrene butadiene emulsions plant in Green Bay, Wis., according to a news release. The plant will remain open for the next nine to 12 months while work is transferred to Mogadore.
"We remain committed to serving the specialty paper and carpet industries as well as the many other specialty applications that use styrene butadiene emulsions," President and CEO Anne Noonan said in the release. "We will work closely with our customers, maintaining service levels to these markets during the transition. Our Mogadore facility has the full complement of technical and production capabilities to meet our customers' needs with the highest levels of technical and service excellence."
The firm cited the continued decline of the paper market as the reason for the closure, according to the release.
A filing with the U.S. Securities and Exchange Commission offered more details. The move is expected to be complete by the third quarter of 2019. Omnova expects to reorganize charges related to this move of $17 million to $20 million through 2019, the filing stated. It expects total cash expenditures for costs like severance and production transition between $5 million and $8 million. And once the move is complete, Omnova expects to sell certain assets, including the land, for $2 million to $4 million.