Cytec Industries Inc. (Woodland Park, N.J., USA) announced on July 31 its initiative to implement cost reductions in its Industrial Materials business segment to address the current market conditions and better position the company for profitable growth.
The plan includes immediate headcount reductions of approximately 55 people, through modification of shift patterns within various operations, centralization of logistics and planning activities, and closure of a small site in Beelitz, Germany. Annual cost savings are estimated to be $5.5 million, and this rate should be reached in the second quarter of 2014. As a result of the above, Cytec will record a pretax restructuring charge in the third quarter of 2013 of approximately $2 million related mainly to severance costs with additional modest restructuring charges to occur in 2014.
Shane Fleming, chairman, president, and CEO, says, “These actions support our commitment to improve the profitability of this business while we navigate through the current challenging economic conditions in the automotive and wind energy markets. We remain fully committed to supporting our strategy to grow our advanced composites and process materials in our targeted Industrial growth markets and these actions will not affect our ability to develop and commercialize technologies for these markets.”