Xerium Announces Planned Closure of Warwick, Quebec Canada PMC Facility
June 30 2015 - 5:15PM
Business Wire
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 Warwick, Quebec Canada.
Production will be transferred to Xerium’s lower-cost plants
outside of North America.
“The Warwick plant has a great history of making high-quality
products. Unfortunately, it also is a very high-cost plant that has
a cost structure that is almost twice as high as Xerium’s low cost
plants due to several key factors including: pension and benefit
costs, machine uptime, productivity, and a declining local-market
business. The machine clothing business is mostly build-to-forecast
wherein customers order ahead of time, thereby allowing for
servicing of the demand from low cost facilities. Several of
Xerium’s competitors provide very high-quality products and have
much more advantaged cost structures and plant locations. The only
way to fight back against this structural setback is to be more
productive – i.e. – to get more production out for the same amount
of manhours/cost. Unfortunately, this was not the case at Warwick.
Most of Warwick’s production will move to Europe. Xerium will
continue to fix its global cost issue in the machine clothing
business. We still have a few more plants that have serious
issues,” said Harold Bevis, Xerium’s President and Chief Executive
Officer.
“As with all plant closures,” continued Mr. Bevis, “these are
difficult decisions which have a significant impact on our people,
their families, and the communities where they live and work.
Unfortunately, this is a straight-forward business decision given
the economic realities involved. These actions will help increase
the company’s competitiveness and enable it to be a better supplier
to its customers."
ABOUT XERIUM
Xerium Technologies, Inc. (NYSE:XRM) is a leading global
provider of industrial consumable products and services. Xerium,
which operates around the world under a variety of brand names,
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. With 26 manufacturing facilities in 12 countries
around the world, Xerium has approximately 3,100 employees.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. The
words "believe," "estimate," "expect," "intend," "anticipate,"
"goals," variations of such words, and similar expressions identify
forward-looking statements, but their absence does not mean that
the statement is not forward-looking. Actual results may differ
materially from these forward-looking statements and estimates as a
result of various important factors, including, without limitation,
the factors discussed in our annual report on Form 10-K for the
fiscal year ended December 31, 2014, and subsequent filings,
all of which are on file with the SEC and are available in the
investor relations section of our website at www.xerium.com. Any
forward-looking statements are as of the date hereof, and 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, except as may be required by law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150630006571/en/
Xerium Technologies, Inc.Cliff Pietrafitta, 919-526-1444Investor
RelationsIR@xerium.com
Xerium (NYSE:XRM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Xerium (NYSE:XRM)
Historical Stock Chart
From Sep 2023 to Sep 2024