Stepan Company to shut down its production facility in Canada
Canada: Stepan Company, a major US
based specialty chemicals manufacturer, has announced plans to close its
production facility at Longford Mills by the end of 2016. The manufacture of
products on this site is expected to be transferred to the other sites controlled
by the company in North American countries. The company has already stopped the
production of ethoxylation at this facility in first quarter of 2016. The total
cost associated with the shutdown of the plant is expected to be USD8 million
and would be recognized during the final quarters of 2016. In addition, the
company is also expected to recognize per-tax savings in manufacturing of about
USD1 million in 2016 which is estimated to increase to about USD3 million in
2018. The shutdown of this facility would reduce the workforce of the company
by about 30 employees.
TechSci Research depicts that the closure of Stepan Company’s facility
in Canada is expected to aid the company in enhancing and improving asset
utilization as well as help them in reducing the fixed cost base, thereby
strengthening the position of the company.