Buckeye Technologies will closeof its Americana,Brazilcotton linter pulp production line. The company will work closely with its customers to continue to meet their needs from itsMemphis, TNfacility.
Buckeye's Chairman and Chief Executive Officer John Crowe says, “This closure has become necessary due to the facility’s uncompetitive cost position for the products it makes. This is primarily driven by the high cost of its cotton linter raw material supply. It is unfortunate that this closure will result in the termination of employment for approximately 60 dedicated employees. We have owned and operated the facility since 2000, and we value and appreciate the many contributions of the organization over the past 12 years. Buckeye will continue to operate the waste water treatment facility for the shared industrial site while we continue discussions with interested parties for the sale of the facility."
We expect to incur about$2.4 millionin restructuring expenses in calendar 2012 and a non-cash asset impairment charge of about$49 millionin the October-December 2011quarter. The closure is expected to generate an approximate$20 millioncash benefit, primarily due to tax benefits related to the investment loss, assuming we are able to utilize all of our potential cellulosic biofuel credits byJune 2016.