PolyOne plant closings to impact 130 in Donora
PolyOne Corp., which makes resins used in plastic pipe and other products, said Tuesday that it will shutter six facilities and relocate its production, resulting in the elimination of about 250 jobs, including 130 at the Donora plant.
PolyOne said in a news release that during the next several months, it will close six manufacturing plants, including the one at 55 S. Washington St., Donora, and relocate production to other PolyOne facilities.
The moves, which stem from PolyOne’s March acquisition of Spartech Corp., are expected to be completed by the end of 2014 and generate annualized pretax savings of about $25 million in 2015, the company said.
Cash costs mainly related to severance, asset relocation and additional capital investments are expected to total $45 million during the next 12 to 18 months, the company said.
Stephen Newlin, PolyOne’s chairman, president and chief executive officer, said that by combining resources, the company will better serve its customers with more competitive costs and better product quality.
Once the restructuring is complete, the company expects the Spartech acquisition to save at least $65 million in costs and boost earnings by at least 50 cents per share.
PolyOne spokesman Kyle Rose said that employees were informed of the changes Tuesday morning.