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March 28, 2008 02:00 AM

Performance Fibers to stop production at two plants

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    RICHMOND, Va. (March 28, 2008) — Performance Fibers Holdings Inc. said it will cease manufacturing at its Winfield and Scottsboro, Ala., facilities because of reduced demand from U.S. tire customers and economic conditions.

    About 100 employees will be affected by the actions in Winfield's polyester-fabric converting operations and 40 at its fabric dipping operations in Scottsboro.

    The start date of the closings will be set based on the necessary period to meet customers' needs, the firm said.

    Performance Fibers said lower customer demand for automobiles, global competition and higher raw material and operating costs led to the decision. It also said the restructuring activities of key tire customers in North America resulted in lower demand for tires.

    CEO Gregory S. Rogowski said market conditions have prevented the firm from fully utilizing the plants since Performance Fibers acquired them in 2005.

    He said the company will work with all of its employees to make the transition as smooth as possible and will honor contract requirements of unionized employees.

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