By: URETHANES TECHNOLOGY INTERNATIONAL
January 28, 2013
RALEIGH, N.C. -- Roll covering group Xerium Technologies Inc. said Jan. 25 that it plans to cut costs by closing two more manufacturing plants, reducing its headcount in Europe and moving polyurethane roll-casting equipment to China.
Xerium has started negotiations to close its paper-machine-clothing facility in Zizurkil, Spain, with employees' representatives and is closing its spreader roll facility in Charlotte, N.C.
According to Harold Bevis, Xerium's president and CEO: "These closures, while difficult on the affected people and communities, are reflective of Xerium's need to restructure its cost profile and to better align its asset base with natural market sizes."
Bevis added that the actions demonstrate the group's "resolve to take immediate and continuous steps to get Xerium back on track to deliver increased adjusted EBITDA and shareholder value."
The company expects permanent annualized cost savings of $3.2 million from these actions.
In the last year, the company said, it has initiated the closure four manufacturing operations, installed new machines in low-cost countries, and lowered its selling, general and administration costs.
These moves are the start of what Xerium (the former Stowe Woodward business) calls "a multi-year repositioning of its cost structure and asset base to better mirror its served markets."
The operation is a global manufacturer of textile belts for paper machines and roll covers used primarily in paper production.
Xerium said these measures add to previously announced cost restructuring actions, expected to result in annual savings of $13.8 million.
Xerium's cumulative actions include:
Bevis noted that the company expects more cost restructuring actions in the future.
Xerium makes two types of consumable products used primarily in the production of paper – machine clothing and roll covers. The clothing products are highly engineered synthetic textile belts (which can be 140 m long by 12 m). They carry paper web along the paper-making machine
In roll covers, Xerium offers rubber, polyurethane, ceramic and composite types for demanding applications.
The company operates around the world from 30 manufacturing facilities in 13 countries. Xerium has about 3,275 employees.