(MENAFN- ProactiveInvestors) SunCoke Energy (NYSE:SXC) the largest independent producer of coke in the Americas said it would more than halve its annual coal output and eliminate 175 jobs due to weak prices.
The Lislie Illinois-based company said in a statement that it would trim its annual coal production to 500000 tons from 1.1 million tons.
SunCoke Energy said plans to downsize its coal operations would result in one-time cash costs of $25 million to $35 million.
The company plans to reduce operations at its coal preparation plant by 50 percent to reduce costs.
The company had about 1344 employees in the United States and about 233 employees at its cokemaking facility in Vitoria Brazil as of Dec. 31 2013.
“… [I]dling a significant portion of the Coal Mining business is the right step going forward and allows us to focus on our core competencies of processing and handling raw materials for industrial customers” SunCoke Energy’s chief executive officer Fritz Henderson said in the statement.
SunCoke Energy which disclosed plans to sell its coal mines in March said today that it was still pursuing opportunities to sell all or a portion of the business.
It said it was also looking at other options including hiring contractors to mine coal or purchasing coal for its 720000 tons Jewell Coke facility in Virginia.
A number of coal producers have cut production as excess supply and tepid demand from China weigh on prices for metallurgical or steel-making coal.
The International Energy Agency said in a report released today that coal use will increase by 2.1 percent a year through 2019 to 6.5 billion metric tons of coal equivalent less than the 2.3 percent growth predicted last year for the five years through 2018.
Shares of SunCoke edged up 0.3 percent to $18.86 at 9:30 a.m. in New York. The stock had lost 18 percent since the beginning of the year through Dec. 12.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.