Home / Knowledge / News / Textiles / PGI plans to phase out North Little operations by end of March 2010
PGI plans to phase out North Little operations by end of March 2010
10
Jun '09
Polymer Group Inc announced it will close its North Little Rock, Ark., plant and consolidate certain manufacturing operations in its Benson, N.C., plant to maintain competitiveness in response to major global downturns in industrial markets.

The company plans to phase out operations of its North Little Rock facility by the end of March 2010 and relocate portions of its hydroentanglement and fusible fiber businesses to increase efficiency, reduce costs and maintain its high quality levels. These activities will involve upgrading the capabilities of both the hydroentanglement and fusible fiber manufacturing bases at PGI in order to meet developing market needs through capitalization of in-house intellectual properties.

The company's decision to consolidate businesses was due to a number of factors, including the business need to upgrade process capabilities coupled with lower demand for select industrial products.

"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, chief executive officer. "As certain market segments for carded technologies increasingly become commoditized or transition to more cost-effective technologies, we must constantly streamline business operations and enhance our capabilities to maintain competitiveness. As a result of these activities, we will be upgrading our overall asset base to better meet market needs."

"Despite efforts to continually improve operations at the North Little Rock plant, the current level and mix of business and future outlook do not support the cost structure of multiple facilities serving these markets," she said. "This decision is extremely difficult and we regret the impact this action will have on our employees, but it is a necessary step to maintain our competitive position and effectively serve the needs of our global customer base."

The North Little Rock plant was built and opened in 1956. It became part of PGI in 1995 when the company acquired the Chicopee business from Johnson & Johnson. After the consolidation is complete, PGI will continue to operate seven plants in the U.S. Other locations include Benson, N.C.; Mooresville, N.C.; Waynesboro, Va.; Kingman, Kan.; Clearfield, Utah; Guntown, Miss., and Clackamas, Ore.

As a result of the decision to consolidate the operations, the company estimates that it will recognize cash restructuring charges of approximately $10.0 million to $11.0 million through the first quarter of fiscal 2010, primarily associated with employee termination expenses and costs to move and upgrade equipment.

The company also currently expects to recognize a non-cash impairment charge during the second quarter of fiscal 2009 of approximately $1.0 to $2.0 million associated with the consolidation and closure. When fully implemented, the consolidation is expected to result in reduced manufacturing costs of approximately $10.0 million to $11.0 million, partially offset by $3.0 million to $4.0 million of lower contribution from the exited businesses.

Polymer Group Inc


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search