Press Releases
Cytec Announces Restructuring of Polymer Additives Product Line
Expects actions to be accretive to 2007 results
June 30, 2006
West Paterson, New Jersey, Cytec Industries (NYSE:CYT) announced
today a restructuring of its polymer additives product line. The
restructuring actions include permanently shutting down the
manufacturing operations for two older technology polymer
additive light stabilizer products produced at the manufacturing
facility in Botlek, the Netherlands. Production of CYASORB®
UV-5411 light stabilizer will be consolidated at Cytec’s Willow
Island, West Virginia facility. The remaining production of
CYASORB® UV-1084 light stabilizer is expected to cease by the
end of the third quarter and Cytec will exit this product line.
The shutdown of the polymer additive production in Botlek
included a full review of the support and commercial
infrastructure at the site and as a result of these actions
approximately 65 positions will be eliminated. An estimated
pre-tax restructuring charge of $21.7 million will be included
in our full year 2006 results of which $13.7 million relates to
a non-cash write-off of polymer additive assets at our Botlek
site with the majority of the balance being severance related.
David Lilley, Chairman, President and Chief Executive Officer
commented, “Market conditions for these two products have
continued to deteriorate. Our manufacturing people in Botlek
have done an excellent job in improving operations but even
after those efforts the products are not profitable. Our
commercial and technology staff have done some tremendous work
in growing the technologically differentiated products of
polymer additives and this restructuring will help us focus even
more effort in replacing the older technology with these
important new products. We believe these actions will improve
the earnings of the polymer additives product line and enhance
the competitive position of the Botlek site which will continue
to produce water treatment chemicals, acrylamide, CYREZ® and
specialty additives. We expect these actions to be accretive to
earnings per share in 2007.”
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained
herein, statements contained in this release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Achieving the results
described in these statements involves a number of risks,
uncertainties and other factors that could cause actual results
to differ materially, as discussed in Cytec’s filings with the
Securities and Exchange Commission.
Corporate Profile
Cytec Industries Inc. is a global specialty chemicals and
materials company focused on developing, manufacturing and
selling value-added products with pro forma sales in 2005 of
approximately $3.2 billion. Our products serve a diverse range
of end markets including aerospace, adhesives, automotive and
industrial coatings, chemical intermediates, inks, mining,
plastics and water treatment. We use our technology and
application development expertise to create chemical and
material solutions that are formulated to perform specific and
important functions in the finished products of our customers.
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