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Rohm & Haas to close Virginia factory

June 14, 2005
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Paint and chemical maker Rohm & Haas Co. said it will close its Wytheville, Va., factory in early 2006, cutting up to 70 jobs in a move to reduce costs through consolidation, the Associated Press reports. The company will move its powder coatings production from the Virginia plant to its operations in Warsaw, Ind., and Reading, Pa., which are closer to major customers and transportation hubs. These plants also afford the "greatest manufacturing flexibility," Rohm & Haas said in a statement. The plant closure will result in first-quarter charges of between $8 million and $10 million from asset devaluation and about $4 million from other costs. The company said closing the plant will save it about $6 million a year before taxes. The company said the decision was driven by various factors including surging raw material costs, overcapacity caused by a growing number of rivals and price competition.

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