Polymer Group Inc announced that it will consolidate manufacturing in the U.S. to lower its operating costs and improve overall performance.
The company will close its Rogers, Arkansas and Gainesville, Georgia plants, and transfer portions of the business to other locations in North America and Asia. Operations at the two plants are expected to be phased out by mid-2007 and the company will provide the affected workers with severance and displacement assistance.
"This consolidation plan is necessary for PGI to maintain its competitiveness in the U.S. markets. It is consistent with our strategy to continuously streamline operations and represents our ongoing commitment to improving our cost position," said William B. Hewitt, Polymer Group's interim chief executive officer. "The steps we are taking will result in an improved cost structure and make PGI a stronger company going forward. We deeply regret the impact these difficult actions will have on our employees but they are necessary to achieve our profit targets in an increasingly competitive global market."
Rogers, Arkansas Plant: PGI will relocate thermal and adhesive bonding business from Rogers to Landisville, New Jersey, to achieve synergies and reduce overhead costs. The company will move manufacturing of spunlace fabrics used in wipes from Rogers to its plants in North Little Rock, Arkansas, and Benson, North Carolina. The materials produced on these lines are used in hygiene, industrialand wiping applications.
marketing@alchempro.com
