CHARLOTTE, N.C., June 2 NC-Polymer-plantclose
CHARLOTTE, N.C., June 2 /PRNewswire-FirstCall/ -- Polymer Group, Inc.
(OTC Bulletin Board: POLGA; POLGB) today announced that it will close its
manufacturing plant in Landisville, New Jersey to better align the company's
capabilities with its long-term strategic direction.
The company intends to close the Landisville plant, which currently
manufactures carded thermal bond and chemical bond products for the hygiene
and medical markets, by the end of the third quarter of 2008. Certain
products lines are expected to be transitioned to other facilities within the
U.S. operations while others will be discontinued. The company will provide
the approximately 85 affected workers with severance and displacement
assistance.
"PGI's focus on leading market positions and global growth requires a
constant assessment of our capabilities compared to the market needs," said
Veronica (Ronee) Hagen, Polymer Group's chief executive officer. "The
consolidation of the Landisville facility is a function of market demand
shifting away from the technological capabilities of the plant and is
consistent with our efforts to focus resources on best-in-class technology and
product offerings. These decisions are difficult and we regret the impact
they will have on our employees, but they are necessary steps to maintain our
competitive position and effectively serve the needs of our global customer
base."
After the consolidation is complete, PGI will continue to operate seven
plants in the U.S. Other locations include Benson and Mooresville, North
Carolina; North Little Rock, Arkansas; Waynesboro, Virginia; Kingman, Kansas;
Clearfield, Utah; Guntown, Mississippi and Clackamas, Oregon.
As a result of the decision to consolidate the operations, the company
estimates that it will recognize restructuring charges of approximately $1.9
million to $3.8 million in 2008. Additionally, the company anticipates
proceeds of approximately $1.0 million to $3.0 million from the sale of the
idled facility and equipment. The initiative is not expected to have a
material impact on the company's gross profit in 2008.
Polymer Group, Inc., one of the world's leading producers of nonwovens, is
a global, technology-driven developer, producer and marketer of engineered
materials. With the broadest range of process technologies in the nonwovens
industry, PGI is a global supplier to leading consumer and industrial product
manufacturers. The company operates 18 manufacturing and converting facilities
in eight countries throughout the world.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth
in this press release are forward-looking statements that involve certain
risks and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements speak only as of the
date of this release. Important factors that could cause actual results to
differ materially from those discussed in such forward-looking statements
include: general economic factors including, but not limited to, changes in
interest rates, foreign currency translation rates, consumer confidence,
trends in disposable income, changes in consumer demand for goods produced,
and cyclical or other downturns; substantial debt levels and potential
inability to maintain sufficient liquidity to finance the company's operations
and make necessary capital expenditures; inability to meet existing debt
covenants; information and technological advances; changes in environmental
laws and regulations; cost and availability of raw materials, labor and
natural and other resources and the inability to pass raw material cost
increases along to customers; changes in selling prices to customers which are
based, by contract, on changes to an underlying index; domestic and foreign
competition; reliance on major customers and suppliers; inability to achieve
successful or timely start-up on new or modified production lines; achievement
of objectives for strategic acquisitions and dispositions; and risks related
to operations in foreign jurisdictions. Investors and other readers are
directed to consider the risks and uncertainties discussed in documents filed
by Polymer Group, Inc. with the Securities and Exchange Commission, including
the company's Annual Report on Form 10-K and subsequent Quarterly Reports on
Form 10-Q.
For further information, please contact:
Dennis Norman
Vice President -- Strategic Planning & Communication
(704) 697-5186
normand@pginw.com
SOURCE Polymer Group, Inc.
