Johnston Industries Plant Consolidation Plan

Johnston Industries Plant Consolidation Plan Company management at Johnston Industries, Columbus,
Ga., completed a review of the companys capacity in light of current market conditions and has
decided to consolidate the Columbus Mill plant into other operations. Management decided it was
necessary to reduce the number of operating plants to better align the company to service customers
in a profitable manner and to stabilize the working schedules for operations personnel.Increasing
competitive pressure has compelled Johnston to remove equipment that is not cost-effective and
focus resources on equipment more suited to its product offering. The age and layout of the
Columbus Mill facility was a key consideration in the consolidation plans, as its multi-story
configuration creates inefficiencies not found in Johnstons other facilities.The business currently
serviced by Columbus Mill will be phased out and merged into the Southern Phenix Textiles and the
Opp and Micolas Mills. Many Columbus employees will be relocating to the Southern Phenix facility.
February 2001

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