RICHMOND, Va., Feb. 2 /PRNewswire-FirstCall/ -- Tredegar Corporation
(NYSE: TG) announced that its Tredegar Film Products Corporation subsidiary
will close its plant in LaGrange, Ga. The plant, which employs 76 people, is
scheduled to close by May 1, 2006. The facility has been for sale since early
2005. Efforts to find a suitable buyer have been unsuccessful.
Tredegar expects to recognize charges related to the shutdown of $3.8
million ($2.3 million after taxes or 6 cents per share), including fixed asset
impairment charges of $1.6 million and other shutdown-related costs of $2.2
million. The company anticipates recognizing charges of $2.1 million ($1.3
million after taxes or 3 cents per share) in the fourth quarter of 2005. Most
of the remaining charges are expected to be recognized in the first half of
The LaGrange facility had sales of commodity blown films of approximately
$20 million in 2005 and was operating at about the break-even level.
Nancy M. Taylor, president of Tredegar Film Products, said: "This was a
difficult decision to make and we regret the impact this decision will have on
our employees in LaGrange. Eligible employees will be offered severance and
Tredegar Film Products is a major supplier of apertured and elastic
materials for use in personal care markets. Primary applications include
diapers and feminine hygiene products. It also produces films for a variety
of packaging and specialty markets. The subsidiary had sales of $456 million
for the last twelve months ended September 30, 2005 and employs approximately
1,200 people at its production facilities in North America, South America,
Europe and Asia.
Based in Richmond, Va., Tredegar Corporation is a global manufacturer of
plastic films and aluminum extrusions.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
This news release may contain "forward-looking statements" regarding
Tredegar Corporation's business. These statements are not historical facts,
but statements that involve risks and uncertainties. Actual results could
differ materially from those included in these forward-looking statements.
For a discussion of such risks and uncertainties, see "Forward-looking and
Cautionary Statements" in the company's Annual Report on Form 10-K for the
most recently ended fiscal year.
SOURCE Tredegar Corporation
/CONTACT: Mitzi S. Reynolds of Tredegar Corporation, +1-804-330-1134,
Fax: +1-804-330-1177, firstname.lastname@example.org/
/Web site: http://www.tredegar.com /
CO: Tredegar Corporation; Tredegar Film Products Corporation
ST: Virginia, Georgia
IN: CHM MNG TEX
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9734 02/02/2006 09:00 EST http://www.prnewswire.com