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

Experts explain why resin sales are down in a healthy US economy

February 27, 2015 1:58 pm ET

The economies of the U.S. and Canada posted solid growth in 2014 — even though resin demand in those countries lagged behind.    More

Image

Industry vet Dwight Morgan joins M. Holland

February 27, 2015 1:55 pm ET

Resin distribution leader M. Holland Co. has hired industry veteran Dwight Morgan as its vice president of corporate development.    More

Image

Indian masterbatch makers growing locally and thinking globally

February 27, 2015 1:30 pm ET

GANDHINAGAR, INDIA — India’s masterbatch makers are expanding their domestic capacity to meet growing demand, as some are also moving...    More

Image

Polypropylene prices rise, while PE and PS fall

February 26, 2015 4:01 pm ET

North American prices for polyethylene and polystyrene resins continued to fall in February, while regional prices for polypropylene showed a...    More

Image

3i to sell specialty chemicals company Azelis to Apax Partners

February 26, 2015 11:36 am ET

Azelis Holding SA, the specialty chemicals distributor, is being sold by its private equity owners 3i Group plc to another private investment outfit, ...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events