By Nicholas G. Miller

Wood product company Koppers is ending distillation and chemical manufacturing operations at its Stickney, Illinois facility and shifting production to its coal tar distillation facility in Nyborg, Denmark.

The move will affect 85 employees and "was driven by challenging market conditions over the past decade, including unit operating costs outpacing our ability to capture higher pricing, reduced raw material supply from North American steel manufacturers, and increased capital requirements," the company said.

Koppers plans to finish remaining distillation and chemical production activities at the facility by the end of the year.

"Despite significant restructuring efforts, our Stickney facility has continued to be pressured by aging infrastructure, a higher cost-structure, excess industry capacity and increasingly constrained raw-material availability," said Chief Executive Leroy Ball.

"Given current and prospective market conditions along with having a more modern operation with adequate capacity in Nyborg, we cannot justify the significant near-term capital investment required at Stickney," Ball said.

As a result of the closure, the company will incur pre-tax charges of $227 million to $262 million through the end of 2029. When finished, the move will improve adjusted earnings per share by $1 to $1.20.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

May 08, 2026 09:16 ET (13:16 GMT)

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