Albany International Announces Reduction in Manufacturing Capacity in North America
04 8월 2006 - 7:04AM
PR Newswire (US)
ALBANY, N.Y., Aug. 3 /PRNewswire-FirstCall/ -- Albany International
Corp. (NYSE: AIN; PCX, FWB) announced today the intention to
discontinue dryer fabric manufacturing operations at its facility
in Cowansville, Quebec, Canada, and to shut down seaming capacity
at its Menasha, Wisconsin, forming fabric operation. These actions
are the result of shifting paper machine clothing demand in the
Americas and the continuing closure of paper and paperboard
machines in North America, especially Canada. The decision by the
Company to discontinue operations is a business-driven necessity
and, therefore, does not reflect on the fine performance of the
affected Albany International employees. The 95 hourly and salaried
employees affected by this decision will receive severance packages
and assistance with outplacement. The Company will complete the
transfer of production to other Albany facilities within the next
several weeks. The Company estimates that it will incur termination
and severance charges of approximately $2.0 million and other cash
charges of approximately $0.5 million in connection with these
actions. These charges will be reflected in third-quarter results,
with the bulk of the cash payments to be made during the third
quarter. In addition, the Company expects to incur additional
charges of from $2.0 to $2.5 million related to the relocation or
retirement of equipment at the affected locations. The timing and
nature of these charges (i.e., cash or non-cash; operating or
restructuring/non-operating) has not been determined, pending final
determination by the Company of the ultimate disposition of each
item. Albany International is the world's largest producer of
custom-designed paper machine fabrics and process belts that are
essential to the manufacture of paper and paperboard. In its family
of businesses, Albany applies its core competencies in advanced
textiles and materials to other industries. Additional information
about the Company and its businesses and products is available at
http://www.albint.com/. DATASOURCE: Albany International Corp.
CONTACT: Kenneth C. Pulver, Vice President-Global Marketing &
Communications of Albany International Corp., +1-518-445-2214 Web
site: http://www.albint.com/
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