Boston, Massachusetts - Cabot Corp expects to incur a $15 million (â‚¬11.8 million) charge in 2006 and 2007 as part of a cost reduction initiative at its carbon black operations.
The Boston-based speciality chemicals maker will record an $8 million expense in the fourth quarter of fiscal 2006 and the remainder by the end of fiscal 2007 primarily from paying out employment termination benefits.
Under the plan, about 130 positions will be eliminated in Cabot's sales, manufacturing and technical service areas.
â€œWe have made every attempt to address the cost issues facing the carbon black business in other ways, but we are convinced that a more structural cost reduction effort must be implemented due to the continued volatility of feedstock and utility costs. We believe these steps are necessary, and that they will make Cabot a stronger and more competitive company," Kennett Burnes, Cabot chairman and CEO, said.