PolyOne To Realign North American Manufacturing Assets - Quick Facts

(RTTNews) - PolyOne Corp. (POL), a global provider of specialized polymer materials, services and solutions, said it would realign its North American manufacturing assets to better serve customers, improve efficiency, and deliver synergy-related cost savings relating to its March 2013 acquisition of Spartech Corp.

The firm would close six manufacturing plants and relocate production to other PolyOne facilities over the next several months. These actions are likely to be completed by the end of 2014 and generate annualized pre-tax savings of some $25 million in 2015. Cash costs are projected to approximate $45 million over the next 12-18 months, mainly related to severance, asset relocation and additional capital investment.

Production at the closing North American facilities would be shifted to other PolyOne locations, and these actions may lead to a net reduction of about 250 employees. Also, PolyOne expects to recognize estimated charges of $35 million on this realignment over the next 12-18 months.