PolyOne Sets Targets for Asset Reconfiguration
Apr 02, 2001, 01:00 ET from PolyOne Corporation
CLEVELAND, April 2 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today
announced that as part of a comprehensive analysis of the North American
manufacturing facilities in its largest business group, Plastic Compounds and
Colors (PCC), it has concluded that these assets should be consolidated into
centers of manufacturing excellence.
By reconfiguring its PCC assets, PolyOne expects to significantly improve
both product quality and customer service, and to reduce operating expenses.
The Company anticipates it will achieve pre-tax savings of $35 million to
$50 million by investing in the upgrade and expansion of certain facilities
while closing others. Within the next two years, the number of PCC
manufacturing sites will be reduced by at least one-third from the current 34.
PolyOne announced on January 29, 2001, that it would close four PCC plants
in the United States, which will result in a pre-tax earnings improvement of
$6 million annually. Those four plants were part of the analysis.
"With this project, we intend to provide PolyOne customers the best
quality and service in our industry," said Thomas A. Waltermire, chairman and
chief executive officer. "We will have simpler, more reliable operations
built around the most advanced process technologies, with the capacity for
quick response and growth."
The Company will invest approximately $45 million in new technology and
equipment to create the centers of manufacturing excellence. PolyOne is
developing a detailed engineering and commercial plan to ensure that there
will be no customer disruptions during the two-year transition period, and is
finalizing the need for equipment upgrades and purchases.
The Company estimates the reconfiguration will be complete by early 2003.
Specifics on sites, employment, financial charges and cash implementation
costs will be released as implementation plans are finalized and approved.
Redesigned information technology systems will support the centers of
manufacturing excellence, further improving reliability and speed of
communications and service. When the information technology upgrade is
complete at the end of third-quarter 2001, PolyOne's singular systems will
standardize business practices across the Company and enable it to expand its
industry-leading capabilities in e-commerce. The new system will connect
PolyOne, its customers and its suppliers.
Waltermire praised PolyOne's people for their cooperation and effort
during the swiftly moving analysis phase of the reconfiguration project, which
was launched in October 2000.
"We still have a great deal to do as we move the project from analysis to
implementation, but I am confident in the outcome and its benefits to our
customers and shareholders," he said.
***
Webcast of Analyst Meeting: PolyOne will host an analyst meeting on
April 3 and 4 in Cleveland. A live webcast can be accessed on April 4
beginning at approximately 7:45 a.m. Eastern Time at www.polyone.com .
PolyOne Corporation is an international polymer services company with
customer-focused operations in thermoplastic and elastomer compounds,
specialty vinyl resins, specialty polymer formulations and inks, engineered
films, color and additive systems, rubber compounding and thermoplastic resin
distribution. PolyOne was formed from the consolidation of the former M.A.
Hanna Company and The Geon Company. Headquartered in Cleveland, Ohio, PolyOne
has more than 9,000 employees at 80 manufacturing sites in North America,
Europe, Asia and Australia, and joint ventures in North America, South
America, Europe, Asia and Australia. The Company's 2000 pro forma revenues
exceed $3 billion. Information on the Company's products and services can be
found at www.polyone.com .
Private Securities Litigation Reform Act of 1995
This release contains statements concerning trends and other forward-
looking information affecting or relating to PolyOne Corporation and its
industries that are intended to qualify for the protections afforded "forward-
looking statements" under the Private Securities Litigation Reform Act of
1995. Actual results could differ materially from such statements for a
variety of factors including, but not limited to: (1) the risk that the former
Geon and M.A. Hanna businesses will not be integrated successfully; (2) an
inability to achieve or delays in achieving savings related to the
consolidation and restructuring programs; (3) unanticipated delays in
achieving or inability to achieve cost reduction and employee productivity
goals; (4) costs related to the consolidation of Geon and M.A. Hanna; (5) the
effect on foreign operations of currency fluctuations, tariffs,
nationalization, exchange controls, limitations on foreign investment in local
businesses, and other political, economic and regulatory risks; (6)
unanticipated changes in world, regional or U.S. PVC or other plastics
consumption growth rates affecting the Corporation's markets; (7)
unanticipated changes in global industry capacity or in the rate at which
anticipated changes in industry capacity come online in the PVC, VCM, chlor-
alkali or other industries in which the Company participates; (8) fluctuations
in raw material prices and supply, and in particular fluctuations outside the
normal range of industry cycles; (9) unanticipated production outages or
material costs associated with scheduled or unscheduled maintenance programs;
(10) unanticipated delay in realizing, or inability to realize, expected cost
savings from acquisitions; (11) unanticipated costs or difficulties and delays
related to the operation of the joint venture entities; (12) lack of day-to-
day operating control, including procurement of raw material feedstocks, of
the OxyVinyls partnership; (13) lack of direct control over the reliability of
delivery and quality of the primary raw materials utilized in the Company's
products; (14) partial control over investment decisions and dividend
distribution policy of the OxyVinyls partnership.
SOURCE PolyOne Corporation
CLEVELAND, April 2 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today
announced that as part of a comprehensive analysis of the North American
manufacturing facilities in its largest business group, Plastic Compounds and
Colors (PCC), it has concluded that these assets should be consolidated into
centers of manufacturing excellence.
By reconfiguring its PCC assets, PolyOne expects to significantly improve
both product quality and customer service, and to reduce operating expenses.
The Company anticipates it will achieve pre-tax savings of $35 million to
$50 million by investing in the upgrade and expansion of certain facilities
while closing others. Within the next two years, the number of PCC
manufacturing sites will be reduced by at least one-third from the current 34.
PolyOne announced on January 29, 2001, that it would close four PCC plants
in the United States, which will result in a pre-tax earnings improvement of
$6 million annually. Those four plants were part of the analysis.
"With this project, we intend to provide PolyOne customers the best
quality and service in our industry," said Thomas A. Waltermire, chairman and
chief executive officer. "We will have simpler, more reliable operations
built around the most advanced process technologies, with the capacity for
quick response and growth."
The Company will invest approximately $45 million in new technology and
equipment to create the centers of manufacturing excellence. PolyOne is
developing a detailed engineering and commercial plan to ensure that there
will be no customer disruptions during the two-year transition period, and is
finalizing the need for equipment upgrades and purchases.
The Company estimates the reconfiguration will be complete by early 2003.
Specifics on sites, employment, financial charges and cash implementation
costs will be released as implementation plans are finalized and approved.
Redesigned information technology systems will support the centers of
manufacturing excellence, further improving reliability and speed of
communications and service. When the information technology upgrade is
complete at the end of third-quarter 2001, PolyOne's singular systems will
standardize business practices across the Company and enable it to expand its
industry-leading capabilities in e-commerce. The new system will connect
PolyOne, its customers and its suppliers.
Waltermire praised PolyOne's people for their cooperation and effort
during the swiftly moving analysis phase of the reconfiguration project, which
was launched in October 2000.
"We still have a great deal to do as we move the project from analysis to
implementation, but I am confident in the outcome and its benefits to our
customers and shareholders," he said.
***
Webcast of Analyst Meeting: PolyOne will host an analyst meeting on
April 3 and 4 in Cleveland. A live webcast can be accessed on April 4
beginning at approximately 7:45 a.m. Eastern Time at www.polyone.com .
PolyOne Corporation is an international polymer services company with
customer-focused operations in thermoplastic and elastomer compounds,
specialty vinyl resins, specialty polymer formulations and inks, engineered
films, color and additive systems, rubber compounding and thermoplastic resin
distribution. PolyOne was formed from the consolidation of the former M.A.
Hanna Company and The Geon Company. Headquartered in Cleveland, Ohio, PolyOne
has more than 9,000 employees at 80 manufacturing sites in North America,
Europe, Asia and Australia, and joint ventures in North America, South
America, Europe, Asia and Australia. The Company's 2000 pro forma revenues
exceed $3 billion. Information on the Company's products and services can be
found at www.polyone.com .
Private Securities Litigation Reform Act of 1995
This release contains statements concerning trends and other forward-
looking information affecting or relating to PolyOne Corporation and its
industries that are intended to qualify for the protections afforded "forward-
looking statements" under the Private Securities Litigation Reform Act of
1995. Actual results could differ materially from such statements for a
variety of factors including, but not limited to: (1) the risk that the former
Geon and M.A. Hanna businesses will not be integrated successfully; (2) an
inability to achieve or delays in achieving savings related to the
consolidation and restructuring programs; (3) unanticipated delays in
achieving or inability to achieve cost reduction and employee productivity
goals; (4) costs related to the consolidation of Geon and M.A. Hanna; (5) the
effect on foreign operations of currency fluctuations, tariffs,
nationalization, exchange controls, limitations on foreign investment in local
businesses, and other political, economic and regulatory risks; (6)
unanticipated changes in world, regional or U.S. PVC or other plastics
consumption growth rates affecting the Corporation's markets; (7)
unanticipated changes in global industry capacity or in the rate at which
anticipated changes in industry capacity come online in the PVC, VCM, chlor-
alkali or other industries in which the Company participates; (8) fluctuations
in raw material prices and supply, and in particular fluctuations outside the
normal range of industry cycles; (9) unanticipated production outages or
material costs associated with scheduled or unscheduled maintenance programs;
(10) unanticipated delay in realizing, or inability to realize, expected cost
savings from acquisitions; (11) unanticipated costs or difficulties and delays
related to the operation of the joint venture entities; (12) lack of day-to-
day operating control, including procurement of raw material feedstocks, of
the OxyVinyls partnership; (13) lack of direct control over the reliability of
delivery and quality of the primary raw materials utilized in the Company's
products; (14) partial control over investment decisions and dividend
distribution policy of the OxyVinyls partnership.
SOURCE PolyOne Corporation
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