New Organization, Divisional Restructuring Announced.
P. H. Glatfelter Co. is a producer of printing and writing, tea bag, tobacco and other specialty papers. In addition to its North Carolina facility, the company's U.S. operations include facilities in Spring Grove, and Neenah, Wis. International operations include facilities in Germany, France, the Philippines, Australia and Canada.
"We have recognized the need to retool our Corporate organizational structure to meet short-term business objectives as well as reposition our company for future growth," said George H. Glatfelter II, president and chief executive officer.
Those short-term objectives include an aggressive emphasis on cash generation, continued support of the company's core product lines, new initiatives in support of expedited development of engineered papers and a strong approach to the integration of the newly acquired Schoeller & Hoesch subsidiary.
"Achieving these objectives is made more challenging due to the unfavorable market conditions currently existing for the company's products," Glatfelter added. "It is therefore essential to focus the new management team on these initiatives."
The plan to reduce the Ecusta Division's workforce is the result of fundamental changes in the tobacco markets into which the company sells its tobacco papers. The company anticipates that market conditions for its tobacco papers will remain unfavorable for the foreseeable future.
Accordingly, the Ecusta Division is being restructured with the intent to reduce the annual costs of salaried and hourly payroll and benefits. The first step in the Division's cost reduction process for salaried employees will be to offer a voluntary early retirement enhancement program.
The program, which is being announced to Division employees today, is being offered to active eligible salaried employees age 55 and older. The company expects to generate annual salaried cost savings of approximately $3.5 million for a one-time expense of approximately $2.2 million.
The cost savings and nature of workforce reductions for hourly employees will depend upon the outcome of negotiations that are scheduled with representatives of Local 1971 of the United Paperworkers' International Union.
The company announced that the following officers were elected at a board of directors meeting on August 6: Robert L. Miller, Vice President for Administration, to Vice President - International Business; Robert S. Wood, Secretary and Treasurer, to Vice President - Administration and Secretary; C. Matthew Smith, Corporate Controller, to Vice President - Finance, and Leland R. Hall, Director of Operations, Glatfelter Division, to Vice President and General Manager, Glatfelter Division.
CONTACT: P. H. Glatfelter Co.
Bob Newcomer, executive VP & CFO, 717/225-4711
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|Date:||Aug 7, 1998|
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