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Performance Fibers intents to idle production at two Alabama plants

28
Mar '08
Performance Fibers Holdings Inc announced that it intends to idle all manufacturing at its Winfield and Scottsboro, Ala. plants, based on reduced demand from U.S. tire customers, combined with increasingly competitive industry and economic conditions.

The planned action will idle polyester-fabric converting operations in Winfield, affecting about 100 employees, and fabric dipping operations in Scottsboro, impacting about 40 employees. The exact timing for the idling will depend on the transition period necessary to meet customers' needs.

The decision to idle its full manufacturing operations at these two plants was caused by a number of factors, including lower consumer demand for automobiles, global competition, and higher raw material and operating costs over the last three years. These factors, combined with the restructuring activities of key tire customers in North America, have resulted in lower overall demand for tires.

“Extremely challenging industry and economic conditions have prevented the plants from being fully utilized since we acquired them in 2005,” said Performance Fibers' CEO Gregory S. Rogowski. “Reduced demand now makes it necessary for us to take these difficult actions to remain globally competitive as a company.”

“We deeply regret the impact this difficult decision will have on the Scottsboro and Winfield workforce,their families and their communities. As always, we are committed to treating all employees with respect and fairness, and we will work to make this transition as smooth as possible for affected employees,” Rogowski continued.


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