Plant
PITTSBURGH, PA, Feb 14, 2012 (MARKETWIRE via COMTEX) --Koppers Holdings Inc. (NYSE: KOP), announced today that Koppers Inc. plans to close its wood treating facility in Grenada, Mississippi effective on or around July 31, 2012. The plant produces primarily utility poles and had net sales of approximately $30 million in 2011 with 46 employees. The cost to close the Grenada facility is estimated at less than $4 million, of which $1.4 million has been previously accrued, and will be incurred over the next two years.
Walt Turner, president and CEO of Koppers, said, "It is always difficult to close an operating facility such as Grenada, as a closure like this directly affects the livelihood of our employees. Plant logistics issues and future capital expenditures required to obtain a more cost effective operation played a significant role in our decision. Additionally, the low level of profitability generated from this plant adversely affected our profit margins and return on capital and the operating results showed no signs of future improvement. We will remain fully committed to our Grenada railroad and utility customers by effectively serving their needs from other existing plant facilities. Our wood tie procurement and utility distribution yard locations serving our Grenada customers are unaffected by this closure."
About Koppers
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, The Netherlands, Australia and China. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Leroy M. Ball at 412 227 2118 or Michael W. Snyder at 412 227 2131.
Safe Harbor Statement
This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.
For Information: Leroy M. Ball Vice President and Chief Financial Officer 412 227 2118 Email Contact
SOURCE: Koppers Holdings Inc.
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