Feb. 23, 2026 -- Stepan Company (NYSE: SCL) today announced Project Catalyst, a comprehensive operational and efficiency plan with the objective to deliver approximately $100 million in pre-tax savings over the next two years. Project Catalyst is a key part of Stepan's commitment to optimizing its global manufacturing footprint, driving shareholder returns and building a foundation for sustainable growth.
Key elements of the plan include:
Optimizing Stepan's global manufacturing footprint through consolidation of volume into more efficient and modern assets within the network to reduce cost and improve productivity.
Operational efficiency and cost optimization in manufacturing, procurement of materials and services, and through improved processes, planning and execution.
Organizational effectiveness with clear accountabilities across businesses and functions, and focused resources to aggressively capture market opportunities advancing the Company's growth strategy.
As part of Project Catalyst, Stepan will close its Fieldsboro, NJ site in response to continued lower demand in commodity surfactants used in the production of laundry detergents. Additionally, select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities will be decommissioned to optimize network utilization. These actions are expected to be completed by mid-2026. Operations will be consolidated into the Company's existing network, creating a more cost-efficient, streamlined operational structure while maintaining ongoing supply for its customers. The Company continues to evaluate additional footprint optimization initiatives to further strengthen its competitive position.
The Company anticipates recognizing restructuring charges in the range of $70 to $80 million in 2026, of which approximately $52 to $62 million is expected to be recognized in Q1 2026. Over the course of the project, cash and non-cash impacts are projected to be in the range of $29 to $44 million and $58 to $62 million, respectively. The restructuring costs will include asset write-downs, decommissioning costs and other related expenses.
"Project Catalyst is a comprehensive plan designed to further optimize our asset base and create a more productive and agile organization to enable growth. This initiative follows the previously announced sale of the Philippines and Lake Providence sites at the end of 2025. Stepan remains committed to implementing proactive measures to ensure competitiveness and resilience in the current environment," said Luis E. Rojo, President and Chief Executive Officer. "Project Catalyst is designed to partially offset inflationary pressures and other headwinds, while enabling us to maintain the resources and flexibility needed to deliver exceptional service and value to our customers. These anticipated savings will also support targeted and strategic investments to boost growth and strengthen Stepan's competitive edge."
Source: Stepan, Yahoo Finance
