COLLIERVILLE, Tenn. – Resin manufacturer AOC LLC is discontinuing operations at its Garbagnate, Italy-based facility, the U.S. firm reported in a statement yesterday.
The current European recession has created significant over-capacity in the unsaturated polyester resin market, according to the company. Volatile raw material costs, associated with world petrochemical price instability, contributed to the decision, AOC stated.
"Unusual and unexpected costs contributed to profit margins well below expected returns," said Randy A. Weghorst, president and CEO. "Higher expenses than anticipated prevented any opportunity for a successful venture. It is best we discontinue operations to avoid further losses."
Weghorst said that while AOC is disappointed in its initial experience in Europe, it is pleased with European customers’ acceptance of its technologies and products. Despite the disappointment, he said the company still plans "to build on the foundation and relationships established in the last few years. Our long term commitment to be a global supplier has not been diminished, only delayed."
Headquartered in Collierville, Tenn., AOC is a global supplier of resin, gel coats, colorants, additives and B-sides for composites and cast polymers. AOC products are manufactured in ISO 9001-2000 certified facilities strategically located in the United States and Canada, with further supply in Mexico, United Kingdom and Thailand.
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