Albemarle Announces Asset and Cost Actions to Enhance Competitiveness and Proactively Respond to Dynamic Market Conditions
Actions include immediate footprint changes to its Kemerton site in Australia, as well as a full review of cost and operating structure
CHARLOTTE, N.C., July 31, 2024 /PRNewswire/ -- Albemarle Corporation (NYSE:ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced it has launched a comprehensive review of its cost and operating structure, as well as immediate asset actions at its Kemerton lithium processing site in Australia. The company is taking these steps to proactively respond to ongoing industry headwinds, particularly in the lithium value chain, so it can preserve long-term competitiveness.
Albemarle's actions regarding Kemerton are part of a broader effort that will focus on the following key areas:
- Preserving Albemarle's world-class resource advantages
- Optimizing its global conversion network
- Improving the company's cost competitiveness and efficiency
- Reducing capital intensity
- Enhancing Albemarle's financial flexibility
These actions are part of the company's comprehensive review of its cost and operating structure. The company expects to report more details during its third quarter earnings call.
"The long-term growth potential for our end markets remains strong, and we plan to leverage our core capabilities while ensuring we remain competitive," said Albemarle Chairman and CEO Kent Masters. "Given the dynamics of the global markets we serve, we must be able to pivot and pace as necessary to maintain our leading position."
As part of the initial review to optimize its network, Albemarle today announced changes to the operating footprint at its Kemerton lithium hydroxide conversion site in Australia. The company will:
- Stop construction activities at Train 3
- Idle production at Train 2 and place the unit in care and maintenance
- Focus manufacturing efforts on the continued ramp and qualification of Train 1
In a separate press release issued today, Albemarle released its second quarter 2024 earnings results. The company will provide further details on its conference call to discuss its second quarter financial results at 8 a.m. EDT on Thursday, Aug. 1, 2024.
About Albemarle
Albemarle Corporation (NYSE:ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at Albemarle.com, LinkedIn and on X (formerly known as Twitter) @AlbemarleCorp.
Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, U.S. Securities and Exchange Commission filings and other information regarding the company, its businesses and the markets it serves.
Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations, intentions, beliefs or strategies regarding the future, which constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated, often contain words such as "anticipate," "believe," "could," "estimate," "expect," "focus," "intend," "may," "should," "would," "will" and variations of such words and similar expressions. Forward-looking statements may include, without limitation, statements regarding future or expected: cost reductions, asset actions, capital projects, market and economic trends, and all other information relating to matters that are not historical facts. Factors that could cause our actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation: changes in economic and business conditions; adverse changes in liquidity or financial or operating performance; fluctuations in lithium market prices, and the other factors detailed from time to time in the reports we file with the U.S. Securities and Exchange Commission, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release. We assume no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Investor Relations Contact: Meredith Bandy, +1 (980) 999-5768, [email protected]
Media Contact: Peter Smolowitz, +1 (980) 308-6310, [email protected]
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SOURCE Albemarle Corporation