Parsippany, N.J.-GenTek Inc. will be closing its Newark, N.J., sulfuric acid production plant at the end of this year. The production and shipment of other products, aluminum sulfate and ferric sulfate, currently being sold from the Newark, N.J., location, will continue without any interruptions. GenTek said the decision was prompted by the fact that the Newark Sulfur operation, already cash flow negative, was facing increasingly adverse market conditions and required infrastructure investments that would have led to material cash losses in this business. It is anticipated that shipment of product will cease during December of 2006; all closure activities are expected to be completed by the end of April of 2007. GenTek is currently negotiating with a third party on the potential sale of the site. The restructuring charges as a result of this closure include termination costs of approximately $1 million and other closure costs totaling approximately $1 million, substantially all of which are expected to be paid in 2007.
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