On December 8, 2008, Rhodia issued a press release revising its guidance for 2008 in the context of the worsening economic environment. The company is feeling the effects of declining end-market demand and customer de-stocking, with the worst effects being felt by the Polyamide, Silcea, and Novecare enterprises. The lower demand is preventing the Group from capturing some of the positive impact of lower raw material and energy costs.
According to Rhodia Chairman and CEO Jean-Pierre Clamadieu, “Addressing this very challenging macroeconomic environment, the Group has reinforced the implementation of the action plans announced early November. These measures include the temporary closure or slowdown of some of our production facilities, primarily operating in the Polyamide, Silcea and Novecare enterprises. Furthermore, we remain focused on stringent cash management in order to secure a positive Free Cash Flow generation for the year. ” (My emphasis) The release did not specify which facilities would be affected.
Here is the release.