The Lubrizol Corporation announced that it plans to close its Bromborough, England-based manufacturing facility. The plant produces additives for fuels, additives for engine oil lubricants and specialty monomers. Lubrizol will begin to phase out production beginning the second quarter of this year and is expected to be completed by late 2006. During this time UK production will be transferred to French and U.S. higher-capacity facilities.
About 69 employees at the Bromborough plant will be affected by the reorganization. However, some will have the opportunity to relocate to other Lubrizol facilities, executives said.
"This move is consistent with Lubrizol's strategy of optimizing our manufacturing infrastructure to lower our cost structure while simultaneously improving our service capabilities for valued customers," said James L. Hambrick, president and chief executive officer of the company. "We expect the UK facility closure and transfer of production to more efficient manufacturing locations to ultimately generate annual cost savings of $10 million by 2007."
Lubrizol also plans to invest $20 million during the next two years for capacity upgrades at alternate manufacturing facilities.