PolyOne.

PolyOne, Cleveland, OH, announced the formation of four Centers of Manufacturing Excellence (CMEs), the first step in the company's previously announced program to modernize its North American Plastic Compounds and Colors manufacturing network. These centers, created to better serve the company's engineered materials customer base, will be upgraded with more than $12 million in new technology and manufacturing equipment. PolyOne plans to invest a total of $45 million over the next two years to reconfigure its North American engineered materials, vinyl compound and colorant manufacturing facilities, all of which are part of its PCC Group. The newly announced CMEs for engineered materials are in Avon Lake, OH; Dyersburg, TN; Macedonia, OH; and Seabrook, TX. These strategically located facilities will be product-focused manufacturing sites. To meet current and projected needs, up to nine new manufacturing lines will be installed at these sites, and up to 65 positions will be added. Following modernization and consolidation at the CME sites, PolyOne said it will close three engineered materials plants. These moves will result in a pre-tax earnings improvement of approximately $12 million annually, beginning in 2003. The sites slated for closing are in Bethlehem, PA; Corona, CA; and Houston, TX. These plants are expected to close in the second half of 2002 as production is transferred gradually to the CMEs. The three engineered materials plant closings will be included as part of the acquisition purchase accounting related to the consolidation of Geon and M.A. Hanna to form PolyOne.