Over the next several months, PolyOne plans to close six manufacturing plants it received in the acquisition of Spartech and relocate production to other PolyOne facilities.
"With the acquisition of Spartech, we identified redundant capacity, that can be better utilized - improving our operational efficiency and cost structure," a PolyOne spokesperson told PlasticsToday.
These actions are expected to result in the loss of about 250 jobs. The PolyOne spokesperson said that production in these facilities spans sheet, packaging, color and engineered materials, depending on the location.In the news release, PolyOne stated that the actions are expected to be completed by the end of 2014 and will save about $25 million before taxes. Cash costs are expected to approximate $45 million over the next 12-18 months, primarily related to severance, asset relocation and additional capital investment.
In October 2012, PolyOne announced the acquisition of Spartech, a global producer of plastic sheet, compounds, and packaging, in a deal valued at approximately $393 million. The transaction was officially completed on March 13, 2013.
With the acquisition of Spartech, PolyOne made changes to its segment structure. PolyOne's specialty platform now has three reportable segments: global color, additives and inks, global specialty engineered materials, and a newly formed segment named Designed Structures and Solutions (DSS). DSS is comprised of Spartech's former sheet and rollstock and packaging technologies businesses. Spartech's color & specialty compounds business was integrated into PolyOne's global color, additives & inks; global specialty engineered materials; and performance products & solutions segments. Use of the Spartech name will discontinue.
"We continue to focus on developing and delivering innovative, specialized solutions that help our customers succeed," the spokesperson said.