Corteva flags higher restructuring charges, plans Spain site exit

June 12 (Reuters) - Corteva on Friday said it now expects to spend up to $115 million more in restructuring its crop protection business and plans to stop production at its Asturias, Spain site.

The U.S. agriscience company last year said it would split its seed and crop protection businesses into two publicly traded companies, branding the seeds and genetics unit Vylor. The separation is expected to be completed in the second half of this year.

The company on Friday also said it has re-estimated costs related to its exit from production at its Pittsburg, California unit.

Corteva projected aggregate pre-tax restructuring and asset-related charges of $750 million to $815 million, including $100 million to $125 million in severance and related benefits.

It expects asset impairments to cost $350 million to $372 million and $300 million to $318 million in expenses tied to exiting production activities, including contract terminations and decommissioning and demolition.

The charges are related to its broader effort to streamline its global manufacturing footprint and cut structural costs, the company said in a filing.

It expects cash outflows of $400 million to $443 million, largely related to demolition, contract exits and employee-related payments.

The Spain site closure remains subject to consultations with works councils and unions. Final costs could change depending on negotiations and other factors, Corteva warned.

Most of the restructuring is expected to be completed by the end of 2028 and reductions in workforce are subject to local regulatory requirements, the company added.

The company also said conditions for the sale of land at the California site have been agreed, subject to completion of due diligence.

(Reporting by Sumit Saha in Bengaluru; Editing by Joyjeet Das)