To better align its carbon black capacity in the European Region with market demand, Columbian Chemicals today announced that it will close Sevalco Limited’s production and Laboratory facilities in Avonmouth, Bristol on or about January 31, 2009. The move will result in approximately 85 positions being eliminated.
“Continued overcapacity coupled with an uncertain business outlook has forced Columbian to reevaluate its assets across Europe,” said Kevin Boyle, President and CEO of Columbian Chemicals Company. “We are optimizing our resources during this difficult economic period while at the same time maintaining our focus on our customers. Our remaining plants in Europe are well positioned to supply this critical market with high quality products and excellent service.”
Mr. Boyle continues, “Our team in Sevalco has worked hard over the last several years to keep the plant operating in a very competitive environment as we have seen demand shift away from Western Europe. The decision to close the plant was difficult due to the impact on our employees, their families and the community.”
While the closure of this production facility removes about 68,000 metric tons of annual capacity, Columbian is committed to maintain market share and to minimize disruption to its valued customers.
“We are very focused on aligning our assets with the demand of our customers which is continuously moving more to the developing economies of the world. With our recent announcement on the closure of our Marshall, West Virginia plant, this rationalization in Europe, along with our recent and ongoing expansions in Brazil, Central Europe, and China is critical to this strategic initiative,” stated Mr. Boyle.
Columbian will continue to closely monitor the evolving global demand outlook for carbon black. “We will take every step necessary to ensure that Columbian Chemicals Company remains a successful leader in the global carbon black market and a valued supplier to our customers,” concluded Mr. Boyle.
Contact: Timothy L. Fedrigon