Elementis shutters production plant in West Virginia

25th Nov 2020 08:57

(Sharecast News) - Specialty chemicals group Elementis said on Wednesday that it had chosen to close its production plant in Charleston, West Virginia.
Elementis' decision to shutter the plant followed a review of its North American manufacturing operations aimed at improving both efficiency and capacity utilisation.

The London-listed group stated closure would impact approximately 30 employees and was effective from 20 November, with production from the site now being consolidated at its plant in St Louis, Missouri.

Elementis said the Charleston closure underpinned the delivery of previously announced $10.0m of annual supply chain savings but cautioned that one-off cash costs of approximately $5.0m would be incurred in 2021.

Chief executive Paul Waterman said: "We have made the difficult decision to close our plant in Charleston as part of our global supply chain optimisation.

"I would like to thank the Charleston team for their hard work and contribution to Elementis. They will receive our full support during this difficult time."

As of 0905 GMT, Elementis shares were up 3.76% at 113.0p.