Stepan (SCL) Launches Project Catalyst to Drive $100M in Cost Savings

Stepan Company (NYSE:SCL) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.

On February 23, Stepan Company (NYSE:SCL) announced Project Catalyst, which is a restructuring and efficiency initiative aimed at generating about $100 million in pre-tax savings over the next two years. The plan focuses on simplifying operations, reducing costs, and improving returns for shareholders. Management said the effort is also meant to position the company for more stable long-term growth.

As part of the plan, Stepan will consolidate production into more efficient facilities. The company also intends to improve its manufacturing and procurement processes. Leadership is restructuring parts of the organization to better align resources with growth opportunities.

Stepan will close its Fieldsboro, New Jersey, plant due to weak demand for certain surfactant products. It also plans to shut down selected assets in Illinois and the U.K. These steps are expected to be completed by mid-2026. Production will shift to other facilities to ensure customers continue to receive supplies without disruption. The company expects to record restructuring charges between $70 million and $80 million, with most of the costs expected in 2026. These charges relate mainly to asset write-downs and plant closure expenses.

CEO Luis Rojo said the initiative is intended to make Stepan more efficient and resilient. He noted that it will help the company manage inflation and other cost pressures, while freeing up resources to invest in future growth and strengthen its competitive position.

Stepan Company (NYSE:SCL) manufactures specialty and intermediate chemicals used across a range of industries. Its business operates through three main segments: Surfactants, Polymers, and Specialty Products.

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