PolyOne to close plants in the US, after Spartech buy

US-based PolyOne Corporation is realigning its US manufacturing assets by closing six plants and laying off 250 staff, in connection with its March 2013 acquisition of Spartech Corporation. These actions are expected to be completed by the end of 2014 and will generate annualised pre-tax savings of approximately US$25 million in 2015. Cash costs are expected to approximate US$45 million over the next 12-18 months, primarily related to severance, asset relocation and additional capital investment.

"These actions are entirely consistent with our previously announced plans to integrate PolyOne and Spartech and to accelerate our specialty transformation," said Stephen D. Newlin, Chairman. "By combining our resources, we expect to better serve our customers with a more competitive cost structure, improved product quality and on-time delivery with increasingly innovative technologies."

Production at the closing North American facilities will be shifted to other PolyOne locations, and these actions are expected to result in a net reduction of approximately 250 employees. "We are committed to delivering at least US$65 million of synergies from the Spartech acquisition and US$0.50 of EPS accretion upon full synergy capture," said Newlin.

PolyOne expects to recognise estimated charges of US$35 million related to this realignment over the next 12-18 months. This includes approximately US$20 million in cash charges, primarily associated with severance and asset relocation costs, and approximately US$15 million in non-cash charges, primarily associated with accelerated depreciation of exited facilities and equipment


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