PolyOne to close Washington, Pa., office, cutting about 20 jobs

By Frank Esposito
Senior Staff Reporter

Published: January 7, 2014 4:52 pm ET
Updated: January 7, 2014 5:04 pm ET

Image By: PolyOne Corp. PolyOne Chairman, President and CEO Stephen Newlin

Related to this story

Topics Materials Suppliers
Companies & Associations PolyOne Corp., Spartech Corporation

PolyOne Corp.'s ongoing realignment of assets it acquired from Spartech Corp. will result in the closing of an administrative office in Washington, Pa.

Administrative work done in Washington now will be done at a PolyOne office in Seabrook, Texas, officials with Avon Lake, Ohio-based PolyOne said in a Jan. 7 news release. Closing the Washington office will result in the loss of about 20 jobs.

Former Spartech plants in Ramos Arizpe, Mexico, and Lockport, N.Y., now will operate as part of PolyOne's Producer Services business, which provides toll compounding for customers and is part of the firm's Performance Products and Solutions business unit.

The Lockport and Ramos Arizpe sites both make compounds and concentrates — primarily based on polypropylene — for the automotive and building and construction markets.

The Lockport plant previously had been part of PolyOne's Specialty Engineered Materials (SEM) unit, which primarily makes compounds and concentrates based on engineering resins and other high-value materials.

The Ramos Arizpe plant previously served both PolyOne's SEM and Designed Structures and Solutions (DSS) units. DCC includes Spartech's former custom sheet and rollstock and packaging technologies businesses.

PolyOne Executive Vice President and Chief Operating Officer Robert Patterson singled out the Ramos Arizpe plant in the release, saying that PolyOne's multi-national customers "are increasingly concentrating production in North America and often choose Mexico as a strategic location."

The new moves come about six months after PolyOne announced it would close six former Spartech plants in the U.S. by the end of 2014. Closing those plants — which made sheet, film and color and engineered materials — will eliminate about 250 jobs and produce $25 million in annual savings, officials said in mid-July.

PolyOne paid $393 million to acquire Spartech in early 2013. Spartech had been a major producer of plastics sheet, as well as color and additive compounds, but had lost more than $70 million combined in its 2010 and 2011 fiscal years.

"After nine months, we remain extremely pleased with the Spartech acquisition," PolyOne Chairman, President and CEO Stephen Newlin said in the Jan. 7 release. "We continue to see upside opportunities to expand our portfolio of offerings and better serve our customers."

Newlin added that PolyOne remains committed to delivering 50 cents in earnings-per-share accretion from the deal during 2015.

In the first nine months of 2013, PolyOne posted sales of more than $2.8 billion, including sales from businesses acquired from Spartech. That's a jump of almost 29 percent versus the same period in 2012. The firm's nine-month profit more than tripled to $218.5 million in the same comparison, but most of that amount came from discontinued operations.

On Wall Street, PolyOne's per-share stock price was under $24 as recently as May, but grew steadily during the rest of 2013 and was at $35.20 in early trading Jan. 7.


Comments

PolyOne to close Washington, Pa., office, cutting about 20 jobs

By Frank Esposito
Senior Staff Reporter

Published: January 7, 2014 4:52 pm ET
Updated: January 7, 2014 5:04 pm ET

Post Your Comments


Back to story


More stories

Image

DuPont resins help take Nike golf balls 'Fore!'ward

July 25, 2014 1:07 pm ET

It may be difficult to imagine just how much science, not to mention rubber and plastic components, go into a golf ball. But global giant DuPont Co....    More

Image

Bioplastics maker wins government funding

July 25, 2014 12:13 pm ET

Canadian bioplastics maker Solegear Bioplastics Inc. has won $1.6 million in funding from the government-sponsored Western Innovation Initiative...    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in 20...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events