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IMERYS to Trim Capacity, Workforce in Sandersville, GA

June 27, 2008 - IMERYS Pigments for Paper North America today announced a restructuring of its Middle Georgia Kaolin operations in Sandersville, Georgia. The plan will result in a capacity reduction, with associated workforce reductions in both operational and associated support functions.

The headcount reduction will total approximately 50 people, consisting of both IMERYS employees and contractors. Every effort will be made to achieve the targeted reductions through early retirement incentives and avoid involuntary separations, the company said.

IMERYS explained that an overcapacity for graphic papers, combined with a slow down in the economy triggering a decline in overall demand, has given rise to major structural changes in the North American paper industry, with multiple mill and paper machine shutdowns. This in turn has significantly reduced the demand for kaolin in this market.

IMERYS added that the restructuring is intended to place the operations on a sustainable path, with a capacity and cost structure consistent with the levels of anticipated market demand.

SOURCE: IMERYS




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