Chevron Oronite Company LLC announced today that it is closing its manufacturing plant operated by its subsidiary, Chevron Oronite Brasil Ltda, in Mauá, state of São Paulo, Brazil.
The decision was made after extensive strategic and economic studies completed in the second half of 2004. On January 18, the employees of this facility were advised that the company had decided to sell or shut down the plant.
“A recent study of our Brazilian operations focused on Oronite’s continuing efforts to deliver maximum value from our manufacturing facilities worldwide. When the various options were evaluated, it became evident that selling or shutting down Maua would result in streamlining our global manufacturing structure and maximizing capacity utilization at our major plants,” said Ronald Kiskis, president, Chevron Oronite Company.
Latin America remains a very important market for Oronite and the company is committed to providing superior service to our customers.
Additives and packages that are currently manufactured in Brazil and supplied to Brazil and other Latin American markets will be supplied from other global facilities.
In order to supply the major Latin American markets, a third party terminal will be established at Santos Port near Sao Paulo and other locations are being considered.
“Decisions like this are not made without extensive review and careful consideration of all factors. We know that this decision will greatly impact our employees in Brazil who have been valued members of the Oronite family for over 25 years.
“Oronite employs 127 people at its Mauá manufacturing plant. While the exact number of jobs that will be impacted is still under review, we expect Sales positions and some Supply Chain, Finance, Human Resources and other administrative positions to stay intact. We estimate that most of transition will be completed by the end of 2005,” said Kiskis.
Chevron Oronite Company LLC is a subsidiary of ChevronTexaco. It is a leading developer, manufacturer and marketer of specialty chemicals that provide additives solutions to customers globally.
Oronite has manufacturing sites in the United States, Mexico, France, India and Singapore. Formed in 1917 Oronite employs nearly 2,000 people around the world with headquarters in San Ramon, California.