PolyOne To Close Six Locations Following Spartech Acquisition

PolyOne Corporation announced July 16 it will close six manufacturing plants from a recent acquisition of Spartech, and relocate some production to other PolyOne facilities in the next several months. None are located in Ohio.

In a press release, the company said it would 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 2013 acquisition of Spartech Corporation. The move is expected to streamline operations.

According to Plastic News, the six recently acquired plants are located in Warsaw, WI, Evanston, IL; Portage, WI.; Cape Girardeau, MO.; Donora, PA.; and Lake Charles, LA.

The closings are expected to be complete by the end of 2014 and are expected to save the company $25 million (pre tax) in 2015.

The acquisition, completed in a $393 million deal was initially announced in October of 2012, and was considered one of the year’s biggest stories in the plastics industry.

“Spartech expands PolyOne's specialty portfolio with adjacent technologies in attractive end markets where we already participate as well as new ones like aerospace and security,” said Stephen D. Newlin, chairman, president and chief executive officer of PolyOne, said in a statement at the time. 

"These actions are entirely consistent with our previously announced plans to integrate PolyOne and Spartech and to accelerate our specialty transformation," Stephen D. Newlin, chairman, president and CEO of PolyOne said in a press 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.

"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 is one of North America's largest compounders and one of the region's largest resin distributors. The company operates more than 80 manufacturing and distribution sites worldwide and posted sales of $2.9 billion in 2012.