North Charleston, South Carolina — Ingevity said the reduced demand for some of its products is causing it to cut costs in a number of divisions.
The company said it was streamlining manufacturing processes, and would temporarily furlough some production employees. It will also cut spending on outside consultants and services, and reduce the benefits of salaried employees, including reduced pension and deferred compensation programmes. It also said it would reduce headcount through early retirement and other employment reductions.
'These programmes will allow us to cut both our cost of goods sold, and [our] selling and administrative costs,' said Rick Kelson, the company’s CEO.
Ingevity is making these cuts to keep its adjusted EBITDA between $310–350 m. 'We are working from a platform of financial strength, and we're working to control what we can in a tumultuous environment,' Kelson added. 'These steps in the long run will make Ingevity a more efficient and more profitable company coming out of the current economic downturn.'
Ingevity bought Perstorp's Capa business in December 2018.
Coronavirus forces Ingevity to into cost and staff cuts
