announced plans to restructure its US fiber operations in an effort to improve its operating
results, and reduce overall debt and working capital. As part of the restructuring, the company
will close its fiber production operations in Johnsonville, S.C., and consolidate all US fiber
production operations at its Darlington, S.C.-based Palmetto plant, which has an annual polyester
fiber production capacity of 500 million pounds. Wellman also plans to sell its Material Recycling
Division, a converter of post-consumer polyethylene terephthalate (PET), and production equipment
for its specialty coarse-denier Wellstrand® fiber. The restructuring will result in the loss of
some 300 jobs out of a total 550 positions in Johnsonville, according to Wellman spokesman Michael
Bermish, who added that the company will continue to produce nylon engineering resins in
Johnsonville.
The restructuring is expected to be complete by the end of 2006.
“Consolidating our US fiber production is expected to increase operating income and reduce
working capital,” said Thomas M. Duff, chairman and CEO. “We will be able to operate one fiber
facility at close to full capacity rather than operating two underutilized facilities. This will
allow us to lower our overall costs and remain more competitive in our domestic fiber operations.”
Wellman also is exploring strategic alternatives for its European fiber and PET resin
businesses, according to Duff. “We are reviewing the performance of these businesses and exploring
strategic alternatives with the goal of improving our overall corporate value,” he said.
October 3, 2006
