Omnova Solutions Inc., a specialty chemicals firm that makes decorative coverings and roofing products, is cutting 100 jobs as part of a restructuring.
Omnova of Fairlawn, Ohio, announced the cuts Oct. 14. Some of the cuts already had been made in September, but most employees affected were told the week of Oct. 13. The cuts, which represent more than 4 percent of Omnova's total workforce, are expected to save Omnova $6.2 million next year.
About 60 of the cuts will come from Omnova's films and laminates business, Chief Financial Officer Michael Hicks said by telephone Oct. 16. Fifteen cuts will come from its Fairlawn headquarters and a latex production site in Mogadore, Ohio, Hicks added.
Kevin McMullen, chairman and chief executive officer, said in a news release that the cuts are needed because of weakness in several markets including office and hotel redecorating, and high raw material costs.
``We believe this restructuring will help position us for improved profitability while retaining our ability to respond quickly when our markets rebound,'' he said.
The round of cuts is Omnova's second this year. The firm earlier cut 70 salaried jobs across the company in a move that Hicks said annually will save $5 million. The partial shutdown of a paper products plant in Monroe, N.C., will save another $3 million a year.
Omnova's sales in the nine-month period ended Aug. 31 were roughly flat vs. 2002 at $506.8 million. But the firm lost $22.5 million in that period this year after earning almost $7 million in the same period a year ago.
Omnova makes a variety of plastics-related products, including PVC laminates and roofing membranes made of PVC, thermoplastic olefins or ethylene propylene diene monomer. The firm also compounds acrylic and polyvinyl acetate resins and produces pigments for plastics.