Kerr-McGee closing Mobile, Ala., plant

June 4, 2003
Kerr-McGee Chemical LLC, Oklahoma City, plans to permanently close its synthetic rutile plant in Mobile, Ala., on Thursday.

By OGJ editors

HOUSTON, June 4 -- Kerr-McGee Chemical LLC, Oklahoma City, plans to permanently close its synthetic rutile plant in Mobile, Ala., on Thursday.

Pete Woodward, Kerr-McGee Corp.'s senior vice-president of chemicals, said the closing was part of the company's previously announced overall plans to enhance operating profitability and focus on its core pigment business.

The plant processed and supplied part of the feedstock for Kerr-McGee Corp.'s two titanium dioxide pigment plants. The company can purchase the feedstock more economically through its supply chain initiatives than it can manufacture the feedstock.

Kerr-McGee anticipates that supply chain programs will result in annual operating savings of $25-30 million, beginning in 2004.

The estimated cost of closing the plant, including decommissioning expenses, is $15 million after taxes. Kerr-McGee plans to account for this cost as a special charge in the second quarter of 2003.

The Mobile plant was built in 1976 and employed 140 people.