Cabot Announces Restructuring of Indonesian Carbon Black Manufacturing
“To be successful over the long term, we must continue to focus on
improving profitability through cost savings and increased operational
efficiency while also producing the highest quality products that meet
our customers’ needs,” said
The decision, which will affect approximately 50 local employees, was
driven by the Merak facility’s financial performance over the past few
years. Despite efforts to be competitive, the facility has suffered from
low utilization rates.
“We wish to recognize our colleagues in Merak, who have worked diligently over the years to take care of our customers and keep the facility operating as competitively as possible,” said Jeff Zhu, president, Cabot Asia Pacific region. “The decision to close the facility is very difficult due to the impact on our people and the community. We have high regard for those who are affected by these actions, and we greatly appreciate their contributions to the company.”
Cabot expects the closure plan will result in a pre-tax charge to earnings of approximately $33 million, of which approximately $8 million of this amount is cash and $25 million is a non-cash charge. Annual savings related to the closure are estimated to be approximately $8 million, of which approximately $5 million is cash.
About
Forward-Looking Statements
Certain statements in this release relate to future events and
expectations and are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as
“expect”, “estimate”, “will”, “intend”, or similar words or expressions
often identify forward-looking statements. All statements other than
statements of historical fact are forward-looking statements, including,
without limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance, and we do not undertake to update our
forward-looking statements. Cabot’s actual results may differ materially
from those described or implied by our forward-looking statements based
on a number of factors, including the factors described in detail under
“Item 1A. Risk Factors” in our Form 10-K filed with the
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Source:
Cabot Corporation
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Erica McLaughlin,
617-342-6090
or
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