Overcapacity, Market Conditions Prompt Columbian Chemicals to Close Production Facility

To better align its carbon black capacity in North America with market demand, Columbian Chemicals today announced that it will close its production facilities in Marshall, West Virginia, on or about January 31, 2009. The move will result in approximately 55 positions being eliminated.

 

“Continued overcapacity coupled with an uncertain business outlook has forced Columbian to reevaluate its assets in North America,” 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 North America are well positioned to continue to provide the same high level of service and quality Columbian’s customers have come to expect from our Marshall facility.”

 

Mr. Boyle continues, “Our team in Marshall 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 North America. 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 50,000 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. This step in North America 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.