Albemarle (ALB) Plans to Cut 230 Positions

As previously disclosed, the assets and businesses of Albemarle Corporation NYSE: ALB) will be realigned effective January 1, 2014, for the purposes of increasing customer focus, improving efficiency, enhancing innovation and accelerating growth for the Company. The realignment will result in the Company operating with two global business units (GBUs): the Performance Chemicals GBU, which will include Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services, and the Catalyst Solutions GBU, which will include Refinery Catalyst Solutions, Performance Catalyst Solutions and Antioxidants. As part of this effort, the Company committed to a workforce reduction plan on October 7, 2013. The plan will result in a reduction of approximately 230 employees worldwide. The reduction is being communicated to affected employees on various dates within the months of November and December of 2013, and all such notifications are expected to be completed by December 31, 2013. Employees who are separated, either voluntarily or involuntarily, will generally receive separation benefits that include a lump sum payment based on earnings and length of service, subject to conditions that may apply in certain jurisdictions based on local labor regulations and/or negotiation. The workforce reduction will be substantially completed by the end of the first quarter of 2014. The Company will record expenses for termination benefits related to the workforce reduction in the fourth quarter of 2013 in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. The Company estimates that it will incur an aggregate of approximately $30 million to $35 million of cash expenses associated with such employee termination benefits (inclusive of $15 million to $20 million of voluntary separation expenses previously disclosed) in the first quarter of 2014. The Company does not anticipate a significant reduction in future operating expenses as a result of the workforce reduction because the Company plans to redeploy resources to research and development, sales and business development in support of its strategic objectives to more rapidly develop and commercialize new applications for bromine, protect and grow the Company’s flame retardants business and more aggressively expand its catalyst business into new markets.

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