New Jersey based textile polymer products, textile fiber, staple, polyester and resins for packaging maker company Wellman Inc announced its Pearl River facility located in Hancock County, Mississippi suffered no major structural damage from hurricane Katrina.
Wellman emergency personnel were at the facility throughout the hurricane. They and other personnel now at the site are evaluating the plant's status and planning the repair work. It appears that the storm surge did not exceed 3 feet at the facility. The plant grounds are dry and the roads and infrastructure on the site are not severely damaged. This facility is located approximately 3 miles north of the Gulf of Mexico. The site elevation is approximately 18 feet above sea level and the plant was built to withstand 135 mile per hour winds.
Since all local resources have been appropriately focused on search and rescue, it is difficult to estimate when production at the facility will resume because the facility requires power, utilities, raw materials and transportation, all which have been damaged. The construction project for 300 million pounds of additional PET resin capacity does not appear to be seriously damaged by the hurricane.
As a result of the hurricane, Wellman's PET resin sales will decrease at least in the third quarter 2005, however, Wellman continues to serve its PET resin customers from its Darlington, South Carolina facility, existing inventory and other sources. Wellman expects its losses from the hurricane to be covered by casualty and business interruption insurance with a $20 million deductible.
marketing@alchempro.com
