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    Breaking NewsIndustry News

    Cutbacks Announced by Rohm and Haas, BASF

    July 31, 2001
    PHILADELPHIA - Rohm and Haas Co. announced plans to discontinue all manufacturing of Adhesives and Sealants and Organic Specialties products at the company's Moss Point, MS, chemicals plant by the end of this year. Rohm and Haas earlier announced that it would halt the production of Liquid Polysulfide and Insulated Glass products at the Moss Point plant.

    The company said it would no longer manufacture the Organic Specialties products, which consist primarily of 2-mercaptoethanol and related derivatives. Rohm and Haas earlier announced that it would exit the Liquid Polysulfide and Insulated Glass businesses. The Adhesives and Sealants Business will relocate manufacturing of polyurethanes to another Rohm and Haas facility, while the business's plasticizers and energy-curable product lines will be relocated to "third-party" manufacturers, the company said.

    The Moss Point facility, opened in 1952, was purchased in Rohm and Haas's 1999 acquisition of Morton International Inc. The site also includes the Shipley electronic-materials subsidiary.

    Rohm and Haas was among several coatings manufacturers that announced expectations for lower-than-expected profits in the second quarter. The Sherwin-Williams Co., BASF AG and DuPont Co. also said earnings for the quarter would fall short of expectations due to continued economic weakness and high raw-material and energy costs.

    BASF also said it will close a number of manufacturing sites around the world in response to slower economic growth and continued high raw-material costs. BASF Chairman Juergen F. Strube said the company will reduce capital expenditures by one-fifth, close 10 manufacturing sites and make other restructuring moves as part of its "Fit for the Future" program.

    No specifics were disclosed regarding plant closings, although news reports indicated that BASF's plants at its main manufacturing complex at Ludwigshafen, Germany, would not be affected.

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