Specialty chemicals firm DyStar has ceased manufacturing operations at its Hilton Davis facility, with certain processes set to be transferred to DyStar LP in Reidsville, North Carolina.
The strategic decision will impact DyStar Hilton Davis’s operations, which have been centered on the production of food, drug, and cosmetic dyes (FD&C), as well as drug and cosmetic dyes (D&C), lakes, technical dyes, and pigment dispersions.
In line with its strategy to optimize and enhance its manufacturing footprint in the Americas, production at this facility is set to cease on June 30.
Once this phase of the group’s consolidation plan is complete, DyStar’s operations in the Americas will primarily be centered at its facilities in Reidsville, North Carolina, and Cheyenne, Wyoming.
DyStar Group managing director and president Xu Yalin stated, “We believe that the success of the strategic plan will position DyStar to decisively respond to the fundamental changes taking place in the industry and enables us to improve profitability while maintaining strategic product development capability, and to accelerate growth over the long-term.”
Regarding the closure, DyStar is committed to collaborating with all relevant stakeholders, including employees, customers, suppliers, and partners, to minimize any adverse impacts on business activities and ensure a smooth global transition.
The company is dedicated to honoring all commitments with integrity, adhering to company policies, collective bargaining agreements, and legal requirements.
During this transition phase, DyStar will provide necessary support to affected employees, including opportunities for them to seek positions at other DyStar locations within the Americas.
The company aims to minimize disruptions to its operations and assures the continued supply of FD&C and D&C dyes, lakes, technical dyes, and pigment dispersions from other facilities within its global network, without compromising quality or sustainability.
DyStar Group global manufacturing vice president Clement Yang remarked, “The overall plan builds upon our global capabilities and resources, and it reinforces DyStar’s strong commitment to strategic investments, product and service excellence, as well as productivity improvements that will drive our company, customers and industry forward.”
The company boasts a global workforce of over 1,500 employees across 50 countries and operates 13 production facilities.
