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PGI to close New Jersey plant, lay off 85 workers

03
Jun '08
Polymer Group Inc announced that it will close its manufacturing plant in Landisville, New Jersey to better align the company's capabilities with its long-term strategic direction.

The company intends to close the Landisville plant, which currently manufactures carded thermal bond and chemical bond products for the hygiene and medical markets, by the end of the third quarter of 2008.

Certain products lines are expected to be transitioned to other facilities within the U.S. operations while others will be discontinued. The company will provide the approximately 85 affected workers with severance and displacement assistance.

"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, Polymer Group's chief executive officer.

"The consolidation of the Landisville facility is a function of market demand shifting away from the technological capabilities of the plant and is consistent with our efforts to focus resources on best-in-class technology and product offerings. These decisions are difficult and we regret the impact they will have on our employees, but they are necessary steps to maintain our competitive position and effectively serve the needs of our global customer base."

After the consolidation is complete, PGI will continue to operate seven plants in the U.S. Other locations include Benson and Mooresville, North Carolina; North Little Rock, Arkansas; Waynesboro, Virginia; Kingman, Kansas; Clearfield, Utah; Guntown, Mississippi and Clackamas, Oregon.

As a result of the decision to consolidate the operations, the company estimates that it will recognize restructuring charges of approximately $1.9 million to $3.8 million in 2008. Additionally, the company anticipates proceeds of approximately $1.0 million to $3.0 million from the sale of the idled facility and equipment. The initiative is not expected to have a material impact on the company's gross profit in 2008.

Polymer Group Inc


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