Koppers Ceasing Phthalic Anhydride Operations at Stickney Facility

Core Viewpoint - Koppers Inc. will discontinue phthalic anhydride production at its Stickney, Illinois facility in 2025 as part of its strategy to optimize its business portfolio and enhance free cash flow [1][5]. Group 1: Decision and Impact - The decision will affect approximately 25 employees and is driven by significant near-term capital spending requirements that are not economically justified by end-market projections [2][5]. - The closure is expected to improve the site's environmental footprint, with annual emissions of certain regulated air contaminants projected to be reduced by 50 to 70 percent [2][5]. Group 2: Production and Operations - Koppers plans to ramp down production over the next six months to build inventory for existing contracts through 2025, with the shutdown targeted for mid-2025 [3][5]. - The closure will not impact the coal tar distillation operations at Stickney, which produce products such as creosote and carbon pitch [3][4]. Group 3: Financial Implications - The action is expected to result in pre-tax charges to earnings of $51 million to $55 million through the end of 2026, with approximately $28 million being non-cash charges anticipated in 2024 and 2025 [5]. - Ongoing operational and capital expenditure savings have been incorporated into the company's current 2025 goals of $300 million of adjusted EBITDA and $65 million to $75 million of capital expenditures [5][6]. Group 4: Strategic Focus - Koppers' CEO emphasized the importance of critically assessing the portfolio and pivoting from underperforming businesses to enhance competitive position in healthier markets [6].