Chemours to close Edgemoor plant in September
Chemours will shut down its Edgemoor plant beginning in September. The company said today the 200 employees will be reassigned whenever possible and those who cannot be reassigned will receive severance packages.
A company spokesperson said no decision has been made on whether Chemours will move its headquarters from Wilmington.
Speaking of the Edgemoor decision, E. Bryan Snell, president of Chemours Titanium Technologies, said, “A plant closure is never an easy decision, because of its impact on peple who are valued members of our company. However, we believe this is the right business decision. Chemours is committed to the TiO2 market, and these changes position us for growth in the industry.”
The Edgemoor plant makes a TiO2 product for use in the paper industry, and its applications have declined steadily for years. That slowdown in demand has resulted in underused capacity at Edgemoor, the company said. Chemours will move production to four manufacturing sites that make a full range of Ti02 products.
The closure of the Edgemoor plant and the company’s New Johnsonville, Tenn., plant are expected to save $45 million annually. The company will incur non-cash charges of about $110 million related to the facility closing in the third quarter. Additional restructuring and charges related to severance, decommissioning and site redevelopment are expected to be in the range of $75-$85 million during the next two to three years, the company said.
The company plans to stop production at Edgemoor at the end of September and decommission the plant around March. The plant will then be dismantled, which could take a year or longer, depending on the site’s future. Chemours said it will immediately begin exploring options for site redevelopment that align with the best interests of the Edgemoor community.
Chemours’ five-point transformation plan is focused on five goals: reducing structural costs, growing market positions, refocusing investments, optimizing the portfolio and enhancing the organization.