The Board of Directors of Fort Mill, S.C.-based fiber, plastic packaging and engineering resin producer Wellman Inc. has engaged New York City-based investment bank Lazard Frères & Co. LLC to help the company explore strategic alternatives prior to refinancing of its debt in 2008.

According to Wellman’s Chairman and CEO, Tom Duff, the company continues to streamline its operations, with the expectation of lowering its costs in 2008 by $20 million to $25 million compared with costs in the previous year.

For the third quarter (Q3) 2007, which ended September 30, Wellman lost $26.3 million, or 81 cents per share, from continuing operations; compared with a Q3 2006 loss of $37.9 million, or $1.19 per share. For the first nine months of 2007, the company reported a loss of $66.1 million, or $2.05 per share; compared with a year-earlier loss of $68.7 million, or $2.15 per share.

“Our financial results in the third quarter were negatively impacted by increased competitive pressures as new PET [polyethylene terephthalate] resin capacities were fully introduced into the NAFTA [North America Free Trade Agreement] market,” Duff said.

The company’s sale of its European recycled-based fiber business earlier this year contributed to enabling it to reduce its outstanding debt by $21.2 million, according to CFO Keith Phillips.

November 6, 2007