Chemours (CC) Announces Next Steps in Transformation; Plans Headcount Reduction

Chemours (NYSE: CC) announced three actions integral to the company's transformation plan.

Chemours announced a global workforce reduction of approximately 400 positions, approximately 5 percent of its total employee and contractor base. This action is part of ongoing efforts to streamline and simplify the structure of the organization worldwide and to reduce costs. As a result of these actions, the company will incur a charge of approximately $45 million in the fourth quarter of 2015. The headcount reduction, expected to be completed during 2016, will affect business lines and functions and is estimated to save the company approximately $50 million annually.

The company also completed the strategic review of its Reactive Metals Solutions (RMS) business and decided to stop production at its Niagara Falls, N.Y. site by the end of December 2016. The Niagara Falls plant has approximately 200 employees and contractors who will be impacted by this action.

This site closure is expected to improve pre-tax income and Adjusted EBITDA by approximately $20 million annually beginning in 2017. In the fourth quarter of 2015, the company will incur cash charges of approximately $17 million for employee-related charges, contract termination, and removal costs. Additional restructuring and other charges related to decommissioning and site redevelopment are expected to be in the range of $10 million to $15 million and will be incurred during the next two to three years.

As part of its portfolio optimization work, Chemours also announced its continued commitment to the company's Belle, W.Va. manufacturing location, which is the site of its methylamines business. The site will remain part of its Chemical Solutions portfolio; the company expects to take additional actions to improve its performance and financial contribution.

"We continue to make significant progress executing against our five-point transformation plan by streamlining our portfolio and our organizational structure. The actions announced today will allow us to focus our resources on our core business segments, operate more efficiently, and strengthen our financial position," commented Mark Vergnano, Chemours president and CEO. "I want to express my sincere thanks to all the employees who are affected by today's announcement for their contributions to Chemours."

The Chemours five-point transformation plan that was announced early August 2015 is focused on five strategic elements: reducing structural costs, growing market positions, refocusing investments, optimizing the portfolio, and enhancing the organization.

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