Venator intends to close its Pori, Finland TiO2 manufacturing facility.
As a result of unanticipated cost escalation, Venator will transfer certain technology, and the production of select product grades, to other facilities within its current manufacturing network, which will become more efficient with greater flexibility.
The Pori facility to continue to operate with up to approximately 25kt capacity (20% of site), with production reducing during the transition period, which is expected to last through 2021.
Venator will restore approximately 45kt of the former Pori specialty and differentiated operating capacity at other sites, generating approximately US$30M of annual adjusted EBITDA in 2020 and more than US$60M in 2023.
Simon Turner, President and CEO of Venator, commented:
"Following an intense review, we have decided to close our Pori, Finland titanium dioxide facility and implement this product transfer and strengthening plan.
"We expect this plan to provide a better economic return than alternative options while maintaining the quality of Venator's speciality and differentiated business in order to service our valued customers.
"Closing the site is the best decision for the long-term success of our business, as we expect to restore the majority of our specialty and differentiated earnings formerly generated by Pori, using our existing facilities.
"We also believe doing so will preserve our financial flexibility and improve our ability to deliver free cash flow throughout the cycle.
"We recognise and regret the impact this decision will have on our associates at Pori.
"We will treat them with fairness and respect consistent with our values and established practices."