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Georgia Gulf Says PVC Production Cut By A Third

Maker of chemicals and home improvement products has cut production capacity at a plant in Louisiana by a third in response to lower supplies of some chemicals.

ATLANTA (AP) -- Georgia Gulf, which makes chemicals and home improvement products, said on Thursday that it has cut production capacity at a plant in Louisiana by a third in response to lower supplies of some chemicals.

The company said it was invoking force majeure for shipments of polyvinyl chloride, or PVC, a common plastic, and that shipments would be affected for a few months. Force majeure generally allows companies to avoid meeting the terms of contracts because of extraordinary circumstances.

A Georgia Gulf spokesman did not immediately respond to a phone message seeking comment.

The company said it is dealing with a reduced ethylene supply -- resulting from a supplier declaring force majeure -- and reduced operating rates for chlorine at its plant in Plaquemine, La.

But Georgia Gulf said it also has operational issues at its plant and is evaluating the length and cost of repairs.

The company still expects to have adjusted earnings at the top end of its guidance of $245 million to $265 million in earnings before interest, taxes, depreciation and amortization.

It plans to release its first-quarter financial results in the first week of May.
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