Baton Rouge-based specialty chemicals firm Albemarle Corp. announced Thursday it will stop making phosphorus flame retardants and shut down plants in the United Kingdom and China that make the product.
The plants are in Avonmouth, U.K., and Nanjing, China.
Albemarle expects to spend $5 million to $15 million in cash for the closures, money the company should recover in a year. Albemarle will also take a one-time, after-tax charge of $80 million to $95 million in the second quarter. Those costs include severance pay, writing off the assets and closure costs.
Dropping phosphorous flame retardants, an underperforming product line, should improve Albemarle’s 2013 earnings per share by 10 cents to 15 cents, according to the company.