Koppers Holdings to close treated utility pole plant in Grenada, Mississippi, this summer, with loss of 46 jobs
February 14, 2012
– 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."
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.