Astaris consolidates phosphate operations
rising competition, yesterday unveiled a restructuring plan
designed to cut costs and boost revenue for North American
operations. The move sees facilities closing and major
consolidation.
Phosphate technology company Astaris, hit by a weaker economy and rising competition, yesterday unveiled a restructuring plan designed to cut costs and boost revenue for North American operations. The move sees plants closing and major consolidation.
The rationalisation programme, to start immediately, will reduce the company's participation in the consumer sodium tripolyphosphate (STPP) market, and includes a reduction in STPP production capacity.
"Astaris' improvements in capacity utilisation, simplified logistics and greater coordination of services will improve our financial performance and competitive position," said Paul L. Howes, president and chief executive officer of Astaris.
Essentially, the plan aims to see fixed costs reduced through production asset rationalisation and selective product rationalisation.
The restructuring will also enable Astaris to strengthen its focus on providing customers with value-added technical solutions, added Howes.
Key elements of the restructuring plan - to be executed over the next nine months - include consolidation of the company's food and technical phosphate salts production into facilities located in Missouri, New Jersey and Kansas. Facilities at its Conda, Idaho, Green River, Wyoming and Trenton, Michigan will close, as well as trans-loading, repackaging and warehousing operations in Bedford Park, Illinois but the Chicago, Illinois distribution terminal will be maintained, the company said in a statement this week.
