Wellman plans a PET comeback
01/10/2008
PET resin producer Wellman has announced that it has filed an amended reorganisation plan with the bankruptcy courts in the US. It said this plan would allow the company to emerge from bankruptcy by the end of the year with a stronger balance sheet, ample liquidity and an efficient operation focused on the North American PET resins business.
The reorganised company will centralise operations at its Pearl River facility in Hancock County, Mississippi, which it describes as “low cost and world class”.
As part of the plan, Wellman will be exiting the polyester staple fibre and engineering resins businesses and concentrating only on PET resin production. It says this will result in lower debt levels.
Mark Ruday, Wellman’s chief executive officer, said on announcing the plan: “While it is always difficult to restructure operations, we believe these actions will maximise value for our stakeholders and position Wellman for future growth.”
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