Wellman restructures.Wellman Inc. has announced plans to restructure its U.S. fiber operations, which, the company hopes, will improve operating results, reduce working capital and lower overall debt. The company is consolidating all of its U.S. fiber production to its Palmetto palmetto or cabbage palmetto Tree (Sabal palmetto) of the palm family, occurring in the southeastern U.S. and the West Indies. Commonly grown for shade and as ornamentals along avenues, palmettos grow to about 80 ft (24 m) tall and have fan-shaped leaves. plant in Darlington, S.C., and closing the fiber capacity at its Johnsonville, S.C., facility. Wellman also has reported that it expects to sell its Material Recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. Division, which converts post-consumer PET bottles to flake flake an epidermal scale. flake Cocaine, see there , as well as certain equipment used to produce Wellstrand, both at its Johnsonville plant. Thomas Duff, Wellman chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , says, "Consolidating our U.S. fiber production is expected to increase operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and reduce working capital. We will be able to operate one fiber facility at close to full capacity rather than operating two under-utilized facilities. This will allow us to lower our overall costs and remain more competitive in our domestic fiber operations. This decision is not a reflection on the dedication or abilities of our Johnsonville employees." The company also announced that it is exploring strategic alternatives for its European fiber and PET resin businesses. Duff says, "We are reviewing the performance of these businesses and exploring strategic alternatives with the goal of improving our overall corporate value." |
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