Jul 26 2006
DuPont today said its plan to improve the profitability and competitiveness of DuPont Performance Coatings' businesses is proceeding on schedule. Announced in March, the plan is designed to reduce annual costs in the coatings businesses by $165 million through productivity programs, position reductions, facility consolidations and rebalancing assets toward faster growing markets.
"Reshaping global businesses while continuing to provide excellent service to customers and markets is a complex undertaking, but I'm pleased to report that we are delivering on our commitments," said Terry Caloghiris, group vice president for DuPont Coatings & Color Technologies. "Excluding one-time costs from the restructuring, fixed costs declined in each of our coatings business units in the second quarter. Our improved second quarter results are early evidence of the positive impact of the actions we are taking. We are on track to complete implementation of the plan by the end of the third quarter of 2007."
To date, Performance Coatings laboratories at Troy, Mich., and Hellac, Germany, have been closed and their operations have been merged with facilities at Mt. Clemens, Mich., and Wuppertal, Germany, respectively. Labor discussions have been completed that will lead to the planned closure of sites at Rubi and Polinya in Spain, and Breda in the Netherlands. The two Spanish sites are expected to close by the end of 2006. Across the Performance Coatings businesses, approximately one-third of the 1,700 positions identified for reduction have been accomplished.
"As our manufacturing realignment plans proceed, we are paying special attention to ensuring that our customers get the products they need, when they need them," Caloghiris said.
As part of the strategy to reorient its business toward faster growing markets, DuPont Performance Coatings announced in May that construction of a world-class coatings plant had begun in the Jiading district of Shanghai. When completed in 2007, it will serve a variety of rapidly growing automotive and industrial markets in China.
The DuPont Performance Coatings transformation plan is part of the capital deployment initiatives the company announced in October 2005, to deliver an acceptable return on assets across a business cycle.
DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.
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