Baton Rouge, Louisiana -- Speciality chemicals group Albemarle Corp. has announced plans to exit its phosphorous flame-retardants business, and said in its 17 May announcement that this is, "In order to restructure its business portfolio and address underperforming assets.
Albemarle currently makes phosphorus flame retardants at its Avonmouth, UK, and Nanjing, China, manufacturing sites.
The proposal for the Avonmouth site is subject to consultation with its employees, which has begun. Albemarle has also started the process to stop operations in Nanjing.
Albemarle said the cash outlay for these proposals is expected to be $5 million to $15 million, with payback in about a year. Albemarle will also incur a one-time after-tax accounting charge in the range of $80 million to $95 million in the second quarter of 2012.
" It has become clear that our current phosphorus business and product lines are not strategically aligned with Vision 2015's growth plans," commented Luke Kissam, Albemarle's chief executive officer, in the company announcement.
Subject to the conclusion of the consultation process in the UK, production at both facilities will cease upon completion of customer contracts, Albemarle said.
We recognize the impact a proposed closure would have on our employees, their families and the communities where they live, and we will strive to minimize this impact," added Kissam.