As part of its multi-year restructuring plan, which dates back to 2006, US speciality chemical manufacturer Ferro Corporation (Cleveland, Ohio / USA; www.ferro.com) has announced additional cost-cutting initiatives for its European manufacturing operations.

In this phase, the revamping mostly will affect Ferro’s operations in Portugal. Bringing to a completion the process of consolidating its high-volume dinnerware frit materials production, the group will discontinue manufacturing these products at its plant in Castanheira / Portugal, moving capacity to its facility in Almazora (Castellon) / Spain. Ferro also intends to shift Castanheira’s entire specialty plastics manufacture to Almazora. The shift is scheduled to be completed by August 2010 and will result in 125 positions being made redundant in Portugal.

Ferro says it expects these actions to present it with charges of USD 14m in the six-month period to 30 June 2010, USD 8m of which will be related to severance costs, USD 3.4m to asset write-offs, with another USD 1.4m estimated for dismantling costs. However, the group believes the consolidation will generate pre-tax costs and expense savings of about USD 5m annually.