Albemarle looks to close flame retardant plants in U.K., China

In an attempt to “restructure its business portfolio and address underperforming assets,” Albemarle Corp. says it plans to exit the phosphorus flame retardant business and close two such plants in the U.K. and China. However, the Baton Rouge specialty-chemical manufacturer notes that both plant closures are subject to consultation with its employees. Those conversations are taking place now. “Subject to the conclusion of the consultation process in the U.K., production at both facilities will cease upon completion of customer contracts,” says a news release from Albemarle. Closing the plants will cost an estimated $5 million to $15 million, the company says, and it expects to recoup those funds in about one year. In addition, Albemarle expects to incur a one-time, after-tax accounting charge in the range of $80 million to $95 million during the second quarter of this year, resulting from severance and closure costs, as well as asset write-downs. “Once these actions are completed, including a restructuring program intended to eliminate costs allocated to the phosphorus business, annual earnings per share should improve by $0.10 to $0.15 per share in 2013,” the news release says.