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Huber to Restructure Kaolin Operations in Georgia

Aug. 10, 2006 - Huber Engineered Materials said that it will restructure its Georgia-based kaolin operations due to continued pressure from costs and competitive alternatives to Georgia kaolin in the paper market

Specifically, the company will transition certain product lines during the next six to nine months from its Macon facility to its Sandersville facility. At the same time, Huber will eliminate certain product lines that have not achieved levels of profitability that support continued investment.

The restructuring is expected to affect approximately 15 to 25 percent of the positions at the Macon facility and impact up to 40 percent of plant capacity, Huber said.

The reduction in capacity will primarily impact paper grade output, although, the transfer of some production to Sandersville will partially offset this effect, the company added.

"The objective of the re-structuring effort is to maximize our cost competitiveness and permit us to better focus on our core products in the paper and industrial markets," said Gerry Collins, VP and General Manager of Huber's kaolin business unit. "The plan is to have a more profitable mix of products for our production facilities, positioning kaolin as a business that maximizes value to our customers and generates financial returns that justify the continued investment required by a long-term business."

SOURCE: Huber Engineered Materials




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