Stolt-Nielsen Transportation Group Ltd. (SNTG), a wholly owned subsidiary of Stolt-Nielsen S.A.
announced a cost reduction program for its business operations which will include the reduction of 10 percent of its approximately 900 office-based staff. SNTG estimates that the
restructuring will enable annual cost savings of approximately $10 million by 2003 by consolidating operations in key regional centers
eliminating some unnecessary management levels. The program will result in a one-time charge of approximately $10 million in 2002.
Reginald J.R. Lee
, Chief Executive Officer of SNTG, said, "The consolidation of our customer base in the chemical industry
resulting needs for improved and more-cost-effective services
has required new strategic initiatives to improve our returns, which
despite recent improvement, have been less than satisfactory in recent years. In early 2001, SNTG embarked upon a major strategic
initiative to improve the utilization of our assets, divest non-core assets, and reduce our cost base. We have previously announced
several aspects of this initiative including combined service agreements with other parcel tanker operators to reduce operating costs and improve utilization; the sale of non-strategic terminals in Perth Amboy and Chicago; and the construction of a new storage terminal in Braithwaite, LA and expansion of terminals in other key ports to increase the synergy between our ships and storage terminals. We are confident that these steps will enable us to better provide cost-effective services to our customers, maintain our leadership position in the industry, and improve shareholder returns."