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Belgium-based Solvay’s Composite Materials business has revealed plans to close two of its facilities as the coronavirus (Covid-19) hits demand.
The two facilities are located in Manchester, UK, and Tulsa, Oklahoma (USA), as well as manufacture composites for Airbus and Boeing.
Plant activities will be relocated to other facilities. According to the company, this will help grow capacity and enhance operational efficiency.
In addition, the company expects the restructuring of its manufacturing presence will lead to improved productivity and better serve customers while lowering costs.
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By GlobalDataThe company has also executed job cuts across the business by eliminating approximately 570 positions, or up to 20% of its workforce.
The plan is expected to be mostly complete by the end of this year and will help the company save approximately €60m while a restructuring charge of around €30m will be taken in the second quarter.
Solvay CEO Ilham Kadri said: “The decision to part company with employees is never one that we take lightly.
“The steps we are taking are necessary to adapt to the dynamic environment and ensure that Solvay is competitive and strongly positioned to meet our customers’ needs as growth eventually resumes, which it will.”
Additionally, the cost-reduction programme was developed due to decreased production of the Boeing 737 MAX.
Last month, Solvay signed a long-term exclusive agreement with Honda Aircraft to supply innovative composites and adhesives for Honda aircraft business jet HA-420 and Elite programs. The contract runs through 2027.
