Stepan Company to shut down its production facility in Canada

Canada: Stepan Company, a major US based specialty chemicals manufacturer, has announced plans to close its production facility at Longford Mills by the end of 2016. The manufacture of products on this site is expected to be transferred to the other sites controlled by the company in North American countries. The company has already stopped the production of ethoxylation at this facility in first quarter of 2016. The total cost associated with the shutdown of the plant is expected to be USD8 million and would be recognized during the final quarters of 2016. In addition, the company is also expected to recognize per-tax savings in manufacturing of about USD1 million in 2016 which is estimated to increase to about USD3 million in 2018. The shutdown of this facility would reduce the workforce of the company by about 30 employees.

TechSci Research depicts that the closure of Stepan Company’s facility in Canada is expected to aid the company in enhancing and improving asset utilization as well as help them in reducing the fixed cost base, thereby strengthening the position of the company.