Wellman to consolidate fiber plants in restructure
Home & Textiles Today Staff -- Home Textiles Today, September 26, 2006
Shrewsbury, N.J. – As the first step in a restructuring, Wellman, Inc. will close its Johnsonville, S.C., fiber production plant and consolidate all such activity to its Palmetto facility in Darlington, S.C.
"We will continue to meet our Johnsonville customers' requirements for high quality fiberfill from our Palmetto plant which has the capacity to produce 500 million pounds of polyester staple fiber annually," said Wellman Fiber and Recycled Products Group vp Joseph Tucker.
In other elements of the plan, the company expects to sell its Material Recycling Division, and will pursue “strategic alternatives” for its European fiber and PET resin businesses. The company said these actions are expected to result in a pre-tax charge of $30 million to $35 million in the third quarter of 2006, mainly in non-cash items.
Of the U.S. plans, Wellman chairman and ceo Thomas Duff said, “"Consolidating our U.S. fiber production is expected to increase operating income and reduce working capital.”
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