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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events