Wellman Inc to resume Pearl River facility in Hancock on Oct 31
21 Oct '05
2 min read
International Fortune 1000 corporation Wellman Inc announced its Pearl River facility, located in Hancock County, Mississippi, is expected to resume PET resin production the week of October 31, 2005 after its temporary shut down due to Hurricane Katrina.
The facility will re-start in two phases. One production line, which has an annual capacity of 260 million pounds, is expected to resume production the week of October 31, 2005. The second production line, with the same annual capacity, is expected to resume production at the end of November.
The Company expects to incur total costs in the third and fourth quarter of approximately $22-$25 million which includes damage to inventory, costs to clean up the site, costs to repair damaged equipment and costs incurred at the site until normal operations are restored.
Approximately $7 million of these costs were incurred in the third quarter with the remaining $15-$18 million expected to be incurred in the fourth quarter. The Company expects to be reimbursed by insurance for substantially all of these costs and lost profits resulting from the hurricane in excess of its $20 million deductible.
Tom Duff, Wellman's Chief Executive Officer, stated, 'He is pleased they are re-starting their Pearl River facility and look forward to the completion of their 300 million pound PET resin expansion in the second quarter of 2006. They want to thank their suppliers, contractors and especially their dedicated and hard working employees for their commitment and effort to restore operations at the site.'
marketing@alchempro.com
