RICHMOND, Va.--(BUSINESS WIRE)--Feb. 1, 2012--
Tredegar Corporation (NYSE:TG) announced that its Bonnell Aluminum
subsidiary will close its plant in Kentland, Indiana. The plant, which
employs 146 people, is scheduled to close by September 30, 2012.
Tredegar estimates that it will recognize charges related to the
shutdown of approximately $8 million, including accelerated depreciation
on fixed assets of approximately $4 million, severance-related charges
of approximately $1 million and other shutdown-related charges of
approximately $3 million. Other shutdown-related charges are primarily
comprised of equipment transfers and plant shutdown charges. It is
anticipated that most of these charges will be recognized over the next
18 months.
The Kentland facility had sales of approximately $38 million in 2010 and
has been operating at a loss for the past several years.
Duncan Crowdis, president of Bonnell Aluminum, said: “This was a
difficult decision to make, and we regret the impact this decision will
have on our employees in Kentland. While the employees have made an
exceptional effort to help weather the current construction recession,
prospects for a significant recovery in Kentland’s core market,
residential building and construction, now appear to be well into the
future. Eligible employees will be offered severance and outplacement
services.”
Bonnell Aluminum is a major supplier of aluminum extruded products
focused largely in the building and construction markets. The subsidiary
had net sales of $234 million for the last twelve months ended September
30, 2011 and employs approximately 825 people at its three production
facilities in the United States.
Based in Richmond, Va., Tredegar Corporation is primarily a global
manufacturer of plastic films and aluminum extrusions.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This news release contains forward-looking statements
regarding Tredegar Corporation’s business. These forward-looking
statements are not historical facts, but statements that involve risks
and uncertainties. Actual results could differ materially from those
included in or implied by these forward-looking statements. Accordingly,
you should not place undue reliance on these forward-looking statements.
Factors that may cause actual results to differ materially from those
contemplated by these forward-looking statements include the factors
discussed in the reports Tredegar files with or furnishes to the
Securities and Exchange Commission (the “SEC”) from time-to-time,
including the risks and important factors set forth in additional detail
in “Risk Factors” in Part I, Item 1A of Tredegar’s 2010 Annual Report on
Form 10-K filed with the SEC. Readers are urged to review and consider
carefully the disclosures Tredegar makes in its filings with the SEC.
Except as required by applicable law or regulations, Tredegar does not
undertake, and specifically disclaims any obligation, to update or
revise any forward-looking statement.
Source: Tredegar Corporation
Tredegar Corporation
Neill Bellamy, 804-330-1211
Fax:
804-330-1777
E-mail: neill.bellamy@tredegar.com
