Nonmetallics

WELLMAN RESTRUCTURES

Wellman Inc. has announced plans to restructure its U.S. fiber operations, which, the company hopes, will improve operating results, reduce working capital and lower overall debt.

The company is consolidating all of its U.S. fiber production to its Palmetto plant in Darlington, S.C., and closing the fiber capacity at its Johnsonville, S.C., facility.

Wellman also has reported that it expects to sell its Material Recycling Division, which converts post-consumer PET bottles to flake, as well as certain equipment used to produce Wellstrand, both at its Johnsonville plant.

Thomas Duff, Wellman chairman and CEO, says, "Consolidating our U.S. fiber production is expected to increase operating income and reduce working capital. We will be able to operate one fiber facility at close to full capacity rather than operating two under-utilized facilities. This will allow us to lower our overall costs and remain more competitive in our domestic fiber operations. This decision is not a reflection on the dedication or abilities of our Johnsonville employees."

The company also announced that it is exploring strategic alternatives for its European fiber and PET resin businesses. Duff says, "We are reviewing the performance of these businesses and exploring strategic alternatives with the goal of improving our overall corporate value."