Lubrizol bomb's Bromborough

Wickliffe, Ohio-based Lubrizol Corporation today announced plans to close its manufacturing facility in Bromborough, England. The facility produces additives for fuels, additives for engine oil lubricants and specialty monomers.

Production will start to wind down in the second quarter of 2005 and is expected to be completed by late 2006. During this phase-out, UK production will be transferred to higher capacity facilities in France and Texas.

A fourth quarter, 2004 non-cash restructuring charge of approximately $17 million pre-tax will be recorded for the impairment of property, plant and equipment. In addition, restructuring charges, consisting of employee severance and other plant closure costs, are estimated to total approximately $15 million and will be incurred in 2005 and 2006.

Some of the 69 affected employees at the UK plant will have an opportunity to relocate to other Lubrizol facilities.

Lubrizol Chairman, President and Chief Executive Officer James L. Hambrick commented, "We expect the UK facility closure and transfer of production to more efficient manufacturing locations to ultimately generate annual cost savings of $10 million by 2007."

In addition to the restructuring charges, the company also expects to invest $20 million over two years for capacity upgrades at alternative manufacturing facilities that will absorb production previously undertaken at Lubrizol's Bromborough facility.