PolyOne closes 6 facilities in North America

PolyOne Corporation is realigning its North American manufacturing assets to better serve customers, improve efficiency, and deliver previously announced synergy-related cost savings in connection with its March 2013 acquisition of Spartech Corporation.

Over the next several months, the company will close six manufacturing plants and relocate production to other PolyOne facilities. These actions are expected to be completed by the end of 2014 and generate annualized pre-tax savings of approximately $25 million in 2015. Cash costs are expected to approximate $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, president and CEO. "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. PolyOne expects to recognize estimated charges of $35 million related to this realignment over the next 12-18 months. This includes approximately $20 million in cash charges, primarily associated with severance and asset relocation costs, and approximately $15 million in non-cash charges, primarily associated with accelerated depreciation of exited facilities and equipment.