Stepan Co Announces Project Catalyst for $100M Savings

By Chris Stiles • Monday, February 23 10:34 • Permanent Link

Stepan Company (NYSE: SCL) has announced Project Catalyst, a comprehensive operational and efficiency plan aimed at delivering approximately $100 million in pre-tax savings over the next two years. This initiative includes optimizing the company’s global manufacturing footprint, driving operational efficiency and cost optimization, and enhancing organizational effectiveness.

As part of Project Catalyst, Stepan will close its Fieldsboro, NJ site due to continued lower demand in commodity surfactants used in the production of laundry detergents. Additionally, select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities will be decommissioned to optimize network utilization. These actions are expected to be completed by mid-2026.

The company anticipates recognizing restructuring charges in the range of $70 to $80 million in 2026, with approximately $52 to $62 million expected to be recognized in Q1 2026. Over the course of the project, cash and non-cash impacts are projected to be in the range of $29 to $44 million and $58 to $62 million, respectively. The restructuring costs will include asset write-downs, decommissioning costs, and other related expenses.

Luis E. Rojo, President and Chief Executive Officer of Stepan, stated, "Project Catalyst is a comprehensive plan designed to further optimize our asset base and create a more productive and agile organization to enable growth. This initiative follows the previously announced sale of the Philippines and Lake Providence sites at the end of 2025. Stepan remains committed to implementing proactive measures to ensure competitiveness and resilience in the current environment."

In addition to the cost-saving measures, Stepan Company is a major manufacturer of specialty and intermediate chemicals used in various industries, including being a leading merchant producer of surfactants and a leading supplier of polyurethane polyols. The company's common stock is traded on the New York Stock Exchange under the symbol SCL. Today the company's shares have moved -0.64% to a price of $51.58. For the full picture, make sure to review STEPAN CO's 8-K report.

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