l Lyondell Chemical Company has restructured its toluene diisocyanates (TDI) business and shutdown its aliphatic diisocyanates (ADI) manufacturing units. The moves include a 20% reduction of the workforce at Lyondell’s Lake Charles, LA manufacturing facility, which employs 600 people, by year’s end. The Lake Charles ADI manufacturing units, which represent an annual capacity of 18 million pounds, will be shut down this year. Lyondell will continue to service its customers into 2002, when it will exit the business.
“We are working with our employees, customers and suppliers to minimize the impact of this decision,” said Morris Gelb, Lyondell’s executive vice president and chief operating officer.
“We are continuing to move forward with our plans to improve the value of our global TDI business,” said Ed Dineen, Lyondell’s senior vice president, intermediates and performance chemicals. “It is critical in this business that we constantly improve our cost structure. While margins are at record lows, we believe that the business fundamentals are sound. We see business starting to improve in the fourth quarter and believe this will continue into 2002. These actions, combined with the efficiency and scale of our existing assets, our employee’s expertise and our technology platform, provide us with a strong competitive position now and into the future.”
ADI products include hexamethylene diisocyanate (HDI) and isophorone diisocyanate (IPDI), which are used in the manufacture of high-performance polyurethane coatings applications for industrial, automotive and home appliance applications. TDI is used primarily to manufacture polyurethane foam for such products as bedding and furniture, as well as automobile seat cushions and instrument panels.