SCOTT PAPER COMPANY REORGANIZES TO FOCUS ON PRIORITY STRATEGIES
PHILADELPHIA, Pa., Nov. 12 /PRNewswire/ -- Scott Paper Company (NYSE: SPP) today announced an executive reorganization to better focus resources against its priority business strategies.
According to Philip E. Lippincott, Scott chairman and chief executive officer, the company will continue to pursue its two principal businesses, worldwide personal care and cleaning and quality coated printing and publishing papers, but in a more focused and choiceful way.
"To provide the necessary resources to support these businesses while improving shareholder value during a time of economic uncertainty, it is imperative we redouble our efforts under the four point business improvement plan announced at the beginning of this year," said Lippincott. "We need to further reduce working capital and continue to control capital spending to the levels specified in our plans. In addition to successfully completing our already announced divestment program, we will develop further potential divestment options. To accelerate our cost reduction efforts, we plan to restructure our organization in line with our highest priority strategies, which will regrettably result in further employee reductions."
To concentrate on better implementation of its strategies and to become a more efficient and customer-focused company, Scott announced the following executive changes, effective Jan. 1, 1992.
P. Newton White, senior vice president and head of Scott's Pacific operations, will assume leadership of the newly formed global away-from-home business. Clemens S. Andes Jr., previously managing director of Scott Limited, the company's United Kingdom business, has been named a senior vice president and will head Scott's consumer business in the Pacific.
Ashok Bakhru, senior vice president and previously chief financial officer, will assume executive responsibility for the newly created global wet wipes business in addition to his current responsibility for Scott's Healthcare business.
John J. Butler, senior vice president and head of Scott's European operations, will become Scott's chief administrative officer, replacing Executive Vice President J. Lawrence Shane, who has elected to retire. As chief administrative officer, Butler will assume responsibility for all corporate staff functions. Paolo Forlin, managing director of Scott S.p.A., the company's Italian business, has been named a senior vice president and will be responsible for the consumer business in Europe.
Ellis A. Horwitz has been appointed vice president and general counsel reporting to Butler and replacing Senior Vice President Norman M. Heisman. Heisman will assume the role and responsibility of counsel to the Board of Directors. He will continue to report to Lippincott.
Senior Vice President Paul N. Schregel will continue to have executive responsibility for the U.S. consumer business and Scott's operations in Canada, Mexico and Costa Rica.
The executive committee will consist of 11 members. In addition to Lippincott and J. Richard Leaman Jr., Scott vice chairman and president of S.D. Warren Company, new members of the executive committee include Andes, Forlin, Horwitz and Joseph L. Salvucci, vice president - Technology. Continuing members are: Bakhru, Butler, Schregel, White, and Barbara A. Rice, vice president of human resources.
Commenting on Shane's retirement, Lippincott said, "Throughout his long and distinguished career, Larry has made major contributions to the business that have helped shape the course of Scott. His high personal standards of excellence, his willingness to take on any task he has been asked to do, and his openness and sense of humor will be sorely missed."
/CONTACT: Michael N. Kilpatric of Scott Paper, 215-522-6232, or after 6 p.m., 215-431-9667/
(SPP) CO: Scott Paper Company ST: Pennsylvania IN: PAP SU: PER SF -- PH009 -- 3290 11/12/91 08:57 EST