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Dainippon Ink To Cut Costs Of Sun Chemical and Reichhold By $169 Million

Press release from the issuing company

January 8, 2004 -- Japan's Dainippon Ink and Chemicals plans to cut costs at Sun Chemical Corp. and Reichhold Inc. by some $169 million by the fiscal year ending March 31, 2005 according to reports from the region. For Reichhold, Dainippon Ink hopes for an operating profit of 100 million yen in the fiscal year ending Dec. 31. The company has been streamlining plant facilities in the U.S. and Mexico and is reviewing plants in Europe for closure as well. Reichhold will also consolidate financial, legal and purchasing functions in single locations in the U.S. and Europe. Reports from the region state that Reichhold has operated at a loss since 2001. Sun Chemical closed and consolidated several plants and business offices last year. Sun plans to cut costs, including personnel and raw materials, by 7.5 billion yen. Sun Chemical will continue to pare down operations in the current fiscal year, aiming to trim costs by an additional 8.2 billion yen according to wire reports.