IMERYS restructuring complete.

IMERYS Pigments and Additives Group, Atlanta, says its restructuring initiative at its Georgia kaolin facilities, which began in fourth quarter 2000, was successfully implemented in the first and second quarter 2001. The restructuring initiative involved the shut down of 800,000 short tons of paper grade kaolin capacity in Middle Georgia. Although IMERYS did not exit any specific kaolin product lines, the majority of tons removed from its operations were mature hydrous grade volumes that have experienced a decline in demand as the paper industry increases use of value-added kaolins and carbonates. At the same time, IMPERYS implemented an across the board price increase on all paper grades of kaolin. The price increase and the cost reduction measures were initial steps toward restoring acceptable profitability at its Georgia kaolin to paper business. However, IMERYS reports higher energy costs and poor market conditions offset much of the gain associated with these initiatives. The China Clay Producers Association reported significant composite industry losses in 2000 for the four major Georgia kaolin producers.