When fullyimplemented the consolidation is expected to result in reduced manufacturingcosts of approximately $10
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When fullyimplemented, the consolidation is expected to result in reduced manufacturingcosts of approximately $10.0 million to $11.0 million, partially offset by$3.0 million to $4.0 million of lower contribution from the exited businesses. Polymer Group, Inc., one of the world's leading producers of nonwovens, is aglobal, technology-driven developer, producer and marketer of engineeredmaterials. With the broadest range of process technologies in the nonwovensindustry, PGI is a global supplier to leading consumer and industrial productmanufacturers. The company also currently expects to recognize a non-cashimpairment charge during the second quarter of fiscal 2009 of approximately$1.0 to $2.0 million associated with the consolidation and closure. Other locations include Benson, N.C.; Mooresville,N.C.; Waynesboro, Va.; Kingman, Kan.; Clearfield, Utah; Guntown, Miss., andClackamas, Ore.As a result of the decision to consolidate the operations, the companyestimates that it will recognize cash restructuring charges of approximately$10.0 million to $11.0 million through the first quarter of fiscal 2010,primarily associated with employee termination expenses and costs to move andupgrade equipment. It became part ofPGI in 1995 when the company acquired the Chicopee business from Johnson &Johnson. After the consolidation is complete, PGI will continue to operateseven plants in the U.S.
As a result of theseactivities, we will be upgrading our overall asset base to better meet marketneeds." "Despite efforts to continually improve operations at the North Little Rockplant, the current level and mix of business and future outlook do not supportthe cost structure of multiple facilities serving these markets," she said."This decision is extremely difficult and we regret the impact this actionwill have on our employees, but it is a necessary step to maintain ourcompetitive position and effectively serve the needs of our global customerbase." The North Little Rock plant was built and opened in 1956. CHARLOTTE, N.C., June 9 /PRNewswire-FirstCall/ -- Polymer Group, Inc. (OTCBulletin Board: POLGA; POLGB) today announced it will close its North LittleRock, Ark., plant and consolidate certain manufacturing operations in itsBenson, N.C., plant to maintain competitiveness in response to major globaldownturns in industrial markets.(LOGO: http://)The company plans to phase out operations of its North Little Rock facility bythe end of March 2010 and relocate portions of its hydroentanglement andfusible fiber businesses to increase efficiency, reduce costs and maintain itshigh quality levels. Information about BlueArcsolutions and services can be found at http:// Contact:Kort van 408.576.6684Copyright 2009, Market Wire, All rights reserved.-0-. BlueArc's best-of-breed,high-performance, highly scalable and cost-effective storage solutionshelp to accelerate our customers' success. Asigra is headquarteredin Toronto, Canada, with offices globally. For more information, visit BlueArcBlueArc partners with customers to solve their storage and datamanagement-related business challenges.
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