CLEVELAND, Ohio – Spartech in Warsaw is one of six PolyOne Corp. facilities to close by the end of 2014, the company announced today. PolyOne Corp. announced it will realign its North American manufacturing assets to “better serve customers, improve efficiency, and deliver previously announced synergy-related cost savings in connection with its March acquisition of Spartech Corporation,” according to a press release. Spartech is at 3454 N. Detroit St., Warsaw. According to the release, “Over the next several months, the company will close six manufacturing plants and relocate production to other PolyOne facilities. These actions are expected to be completed by the end of 2014 and generate annualized pre-tax savings of approximately $25 million in 2015. Cash costs are expected to approximate $45 million over the next 12-18 months, primarily related to severance, asset relocation and additional capital investment.” According to Kyle Rose, PolyOne corporate communications director, the Warsaw facility will be one of the six plants to close by the end of 2014. “Each of the facilities will have a different timeline and process to be closed. All will be closed by the end of 2014,” Rose said. “These actions are entirely consistent with our previously announced plans to integrate PolyOne and Spartech and to accelerate our specialty transformation," said Stephen D. Newlin, chairman, president and CEO, in the release. “By combining our resources, we expect to better serve our customers with a more competitive cost structure, improved product quality and on-time delivery with increasingly innovative technologies.” Production at the closing North American facilities will be shifted to other PolyOne locations, and these actions are expected to result in a net reduction of approximately 250 employees. Rose said as facilities are idled, some of the jobs will be transferred to other facilities. “We are having discussions with employees with regard to transition support,” Rose said when asked about employee severance packages. He said the company spent time this morning communicating with its employees about the changes. “Our exceptional management team has the experience and proven track record of transforming and integrating businesses with specialty potential through the execution of our four-pillar strategy,” Newlin said. “We are committed to delivering at least $65 million of synergies from the Spartech acquisition and $0.50 of EPS accretion upon full synergy capture.” “While the business case for these actions was clear, we understand the impact this announcement will have on affected employees, their families and local communities, and we will handle these moves with great sensitivity and dignity for everyone affected,” Newlin said. PolyOne expects to recognize estimated charges of $35 million related to this realignment over the next 12-18 months. This includes approximately $20 million in cash charges, primarily associated with severance and asset relocation costs, and approximately $15 million in non-cash charges, primarily associated with accelerated depreciation of exited facilities and equipment. PolyOne Corporation, with 2012 revenues of $2.9 billion, is a provider of specialized polymer materials, services and solutions. For more information, visit www.polyone.com
