Xerium Announces Planned Closure of Brazilian PMC Facility
July 31 2014 - 4:50PM
Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of
industrial consumable products and services, today announced that
it has initiated closure proceedings with the representative union
officials at its PMC facility in João Pessoa, Brazil. Production
following the closure will be transferred to the Company's PMC
facility in Piracicaba, Brazil where there is sufficient capacity
to handle João Pessoa's order volume and is strategically located
with the ability to better serve the South American market from a
logistics standpoint. Due to the nature of the proceedings with the
local union, the Company is not able to provide a full estimate of
the anticipated restructuring expenses at this time.
"We continue to take the required steps to achieve our
multi-year repositioning plan to improve our sales, Adjusted EBITDA
and share price. These initiatives are well under way and we are
pleased with the actions to date and the confidence restored in
Xerium both internally and externally. These actions will further
strengthen our global responsiveness and competitive edge. These
changes require difficult decisions that affect great people but
these are very necessary actions given the economic realities of
the markets we serve. As with our previous restructuring efforts,
we have firm plans to save as many jobs as possible under these
circumstances," said Harold Bevis, Xerium's President and Chief
Executive Officer. "We believe these actions will increase our
competitiveness in South America, without sacrificing quality or
our position in the market."
ABOUT XERIUM
Xerium Technologies, Inc. (NYSE:XRM) is a leading global
provider of industrial consumable products and services. Xerium
utilizes a broad portfolio of patented and proprietary technologies
to provide customers with tailored solutions and products integral
to production, all designed to optimize performance and reduce
operational costs. Xerium has 27 manufacturing facilities in 12
countries around the world and employs approximately 3,200
employees.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements,"
including those regarding the planned facility closure.
Forward-looking statements involve risks and uncertainties, both
known and unknown, that may cause the proposed closure and actual
results to differ materially from those indicated. These risks and
uncertainties include the following items: (1) prolonged
negotiations with the workforce or changes in Brazilian employment
law may materially increase the difficulty and/or costs of these
workforce reductions and the closing of the facility; and (2) the
other risks and uncertainties discussed elsewhere in this press
release, our Form 10-K for the year ended December 31, 2013 filed
on March 4, 2014 and our other SEC filings. If any of these risks
or uncertainties materialize, or if our underlying assumptions
prove to be incorrect, actual results may vary significantly from
what we projected. Any forward-looking statement in this press
release reflects our current views with respect to future events.
Except as required by law, we assume no obligation to publicly
update or revise these forward-looking statements for any reason,
whether as a result of new information, future events, or
otherwise. As discussed above, we are subject to substantial risks
and uncertainties related to current economic conditions, and we
encourage investors to refer to our SEC filings for additional
information. Copies of these filings are available from the SEC and
in the investor relations section of our website at
www.xerium.com.
CONTACT: Xerium Technologies, Inc.
Phillip Kennedy
Investor Relations
919-526-1444
IR@xerium.com
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