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FOR IMMEDIATE RELEASE
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Contact: Mickey Foster
Vice President
Corporate and Investor Relations
(732) 933-5140
MILLENNIUM CHEMICALS ANNOUNCES
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FURTHER COST SAVINGS ACTIONS
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--IDLING SULFATE-PROCESS TITANIUM DIOXIDE PLANT--
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--RERATING CHLORIDE-PROCESS PLANT CAPACITY--
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--REDUCING GLOBAL WORKFORCE TEN PERCENT--
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--TAKING ONE-TIME $30 MILLION 2Q01 CHARGE--
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London, England and Red Bank, New Jersey, June 28, 2001 - Millennium
Chemicals (NYSE - MCH) ("Millennium") announced today that as party of its
previously announced initiative to accelerate cost savings, it will idle
its sulfate-process titanium dioxide (TiO2) facility at Hawkins Point,
Maryland and reduce its worldwide workforce by approximately 10%.
IDLING ONE TIO2 PLANT, RERATING TWO OTHERS
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Millennium will idle its high-cost 44,000 metric tons per year,
sulfate-process TiO2 plant in Hawkins Point, Maryland for an indefinite
period on September 1, 2001. The idled plant primarily serves the U.S.
paper industry. Customers will not be impacted by this action, as they will
be provided product from Millennium's other TiO2 plants. This action will
lower global manufacturing costs per metric ton. Millennium's 50,000 metric
tons per year chloride-process plant at Hawkins Point will continue to
operate. As a result of recent minor bottlenecking and demonstrated
operating results, the chloride-process TiO2 plants in Kemerton, Australia
and Ashtabula, Ohio have been re-rated, increasing capacity by 10,000 and
12,000 metric tons per year, respectively. Millennium's annual TiO2
capacity is now 690,000 metric tons per year, or 3% less than before these
actions, of which 73 percent utilize chloride-process technology.
GLOBAL WORKFORCE REDUCTION
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In order to streamline the cost structure at existing operations and to
optimize cash flow from its more mature businesses, Millennium is reducing
its 4,300 global workforce by about 10 percent, including 250 employees at
the Hawkins Point facility.
FINANCIAL IMPACT
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As a result of these actions, Millennium will incur one-time charges in the
second quarter of 2001 of approximately $30 million, including $10 million
of non-cash asset impairment charges. Cost savings associated with these
steps are expected to exceed $25 million annually. Millennium plans to
release second quarter results on Thursday, July 26, 2001.
Millennium Chemicals (website: www.millennium .com) is a major
international chemicals company, with leading market positions in a broad
range of commodity, industrial, performance and specialty chemicals.
Millennium Chemicals is:
o the second largest producer of TiO2 in the world and a leading
producer of titanium tetrachloride, and other products, including
cadmium/selenium pigments and silica gel;
o the second-largest producer of acetic acid and vinyl acetate
monomer in North America, and through its partnership interest in
La Porte Methanol Company, LP, a partner in a leading U.S.
producer of methanol;
o a leading producer of fragrance chemicals; and
o through its partnership interest in Equistar Chemicals, LP, a
partner in the second-largest producer of ethylene, and the
third-largest producer of polyethylene in North America and a
leading producer of ethylene oxide and its derivatives and high
value-added specialty polymers.
The aforementioned statements relating to matters that are no historical
facts are forward-looking statements that involve risks and uncertainties,
including, but not limited to, future global economic conditions,
production capacity, competitive products and prices and other risks and
uncertainties detailed in the company's Securities and Exchange Commission
filings. In addition, the information presented here is intended to be
accurate as of this date. Forward-looking information is intended to
reflect the opinions as of this date; and, such information will not
necessarily be updated by the Company.