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Tredegar Selling Films Plant in LaGrange, Ga.
RICHMOND, Va., Jan. 10 /PRNewswire-FirstCall/ -- Tredegar Film Products Corporation, a subsidiary of Tredegar Corporation (NYSE: TG), announced that it is exploring the sale of its plant in LaGrange, Ga. The LaGrange plant produces blown films used for adult incontinent and baby diaper backsheet, feminine hygiene pad pouch packaging, and other packaging and industrial applications. The company has hired Maryland-based financial advisors Bengur Bryan & Co., Inc., to assist with the divestiture.
Thomas G. Cochran, president of Tredegar Film Products, said: "Our growth strategy is based on expanding sales of apertured, elastic and specialty materials. This divestiture is a continuation of our efforts to align production capacity with the changing demands of our global customer base."
Annual revenues for the products included in the sale are about $25 million. Apertured and elastic products, tissue and towel overwrap, and specialty materials currently produced at the LaGrange plant will be relocated to other facilities. The proposed transaction is not expected to have a material impact on Tredegar Corporation's financial results.
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 $394 million for the last 12 months ended September 30, 2004, 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. Tredegar is also developing and marketing bone graft substitutes through its Therics subsidiary.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
The words "believe," "hope," "expect," "are likely," and similar expressions identify "forward-looking" statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contained in the forward- looking statements, including without limitation the following:
There is no assurance that Tredegar Film Products will be able to successfully complete the proposed divestiture of the LaGrange plant within a reasonable timeframe or at all or that it will be able to obtain acceptable terms and conditions for such sale from a purchaser.
Tredegar Film Products is highly dependent on sales to one customer, which comprised approximately 30% of Tredegar's net sales in 2003. Tredegar Film Products' success in this regard depends on its ability to develop products that meet this customer's requirements as well as market acceptance of this customer's products. Our ability to grow Tredegar Film Products and attract new customers depends on developing and delivering new products, especially in the personal care market. Personal care products are now being made with a variety of new materials, replacing traditional backsheet and other components. While we have substantial technical resources, there can be no assurance that our new products can be brought to market successfully, or at the same level of profitability and market share of replaced films. A shift in customer preferences away from our technologies, our inability to develop and deliver new profitable products, or delayed acceptance of our new products in domestic and foreign markets, could have a material adverse effect on our business.
Future performance is also influenced by the costs incurred by Tredegar's businesses. There is no assurance that cost control efforts will offset cost increases or any additional declines in revenues. Likewise, there is no assurance of our ability to pass through to our customers cost increases in raw materials.
Tredegar does not undertake to update any forward-looking statement made in this press release to reflect any change in management's expectations or any change in conditions, assumptions or circumstances on which such statements are based.
SOURCE Tredegar Corporation -0- 01/10/2005 /CONTACT: Mitzi S. Reynolds of Tredegar Corporation, +1-804-330-1134, Fax: +1-804-330-1177, or E-mail: email@example.com/ /Web site: http://www.tredegar.com/ (TG) CO: Tredegar Corporation; Tredegar Film Products Corporation ST: Virginia, Georgia IN: TEX CHM MNG SU: MB-JA -- DCM010 -- 2730 01/10/2005 09:15 EST http://www.prnewswire.com