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PGI To Close Landisville Site

Closure to occur in third quarter.

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By: Karen McIntyre

Editor, Nonwovens Industry

PGI will close its manufacturing plant in Landisville, NJ to better align the company’s capabilities with its long-term strategic direction. The company intends to close the Landisville plant, which currently manufactures carded thermal bond and chemical bond products for the hygiene and medical markets, by the end of the third quarter of 2008. Certain product lines are expected to be transitioned to other facilities within the U.S. operations while others will be discontinued. The company will provide the approximately 85 affected workers with severance and displacement assistance.
    
After the consolidation is complete, PGI will continue to operate seven plants in the U.S. Other locations include Benson and Mooresville, NC; North Little Rock, AR; Waynesboro, VA; Kingman, KS; Clearfield, UT; Guntown, MS and Clackamas, OR.

As a result of the decision to consolidate the operations, the company estimates that it will recognize restructuring charges of approximately $1.9 to $3.8 million in 2008. Additionally, the company anticipates proceeds of approximately $1 to $3 million from the sale of the idled facility and equipment. The initiative is not expected to have a material impact on the company’s gross profit in 2008.

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