Wellman to Consolidate Fiber Factories
October 2, 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.
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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