Hexpol restructuring compounds production, portfolio in US

Malmo, Sweden - Hexpol Americas has launched a reorganisation programme to adjust its product portfolio and production capacity, parent Hexpol AB has announced.

Intended to “optimise and create better efficiency” in operations, the changes include the closure of Hexpol’s facility in Kennedale, Texas by mid-year 2025, the Swedish group said 12 Dec.

All businesses from Kennedale are to be relocated to other North American facilities, the compounder adding that it will work with customers to ensure smooth transition.

Hexpol's statement did not give details about the number of jobs impacted by the restructuring or the products manufactured at the Kennedale site.

Costs associated with the closure of the production site were not disclosed but will be reflected in the group’s fourth quarter performance.

Furthermore, Hexpol Americas has divested its production site in Muscle Shoals, Alabama to private investment firm Karo Ventures LLC, effective immediately.

According to Hexpol, it will work closely with Karo Ventures to ensure a ‘seamless transition’ for associates, customers and suppliers.

The Muscle Shoals unit, it said, manufactured products “outside of Hexpol's core business” and had an annual sales of $7 million (€6.6 million), with a profitability level below that of the group.

The transaction, the value of which was not disclosed, will be reported separately in the fourth quarter of 2024, “with minimal impact on the net result,” stated Hexpol.

ERJ has requested more information from Hexpol about these developments.