Manufacturer and marketer of polyester products Wellman, Inc. incurred a net loss of $16 million for the quarter ended March 31, compared with net earnings of $11.6 million for the same period in 2005.

Tom Duff, Wellman's chairman and chief executive officer stated that sales and earnings were adversely impacted by the surge in PET resin and polyester staple fibre imports that were caused by the increased raw material cost advantage enjoyed by Asian polyester producers compared with domestic producers during the latter part of 2005, primarily as a result of the Gulf Coast hurricanes. However, these imports continued into the first quarter due to advance purchases which reduced the demand for domestically produced polyester products.

The company believes it lost 25 million pounds of PET resin volume in the first quarter 2006 as a result of the increase in imports, adversely affecting operating results by approximately $9 million.

Sales volumes are expected to increase with the start of Wellman’s 300 million pound PET resin expansion at its Pearl River facility in the second quarter 2006.