Xerium Announces Planned Closure of European Rolls Facility
January 09 2014 - 4:18PM
Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of
industrial consumable products and services, today announced that
it has initiated consultation proceedings with the works council at
its rolls facility in Heidenheim, Germany. Production after a
closure would be transferred to the Company's remaining rolls
facilities in Europe where there is sufficient capacity to handle
Heidenheim's order volume. Due to the nature of the proceedings
with the local works council, the Company is not able to provide an
estimate of the anticipated restructuring expenses at this time,
but does expect permanent annualized cost savings of $2.1 million
from this action.
"We are continuing our multi-year program to strengthen our
competitiveness globally. It requires difficult decisions that
affect great people but these are very necessary actions given the
economic realities of the markets we serve. 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
Europe, 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 28 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 proposed facility closure, the
anticipated timing of this action and the anticipated
savings. Forward-looking statements involve risks and
uncertainties, both known and unknown, that may cause the proposed
closure, the anticipated timing of this closures and actual results
to differ materially from those indicated. These risks and
uncertainties include the following items: (1) prolonged
negotiations with the works council and/or changes in German
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, 2012
filed on March 11, 2013 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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