This excerpt taken from the SWM 8-K filed Apr 21, 2009.
Costs Associated with Exit or Disposal Activities.
Due to continuing losses at our finished tipping paper production facility, Papeteries de Malaucène SAS in Provence, France, the Company on April 17, 2009, committed to a plan to divest the site through closure of the mill with a goal to subsequently sell the mill assets. The planned closure is expected to reduce employment by 210 people. Although the terms of severance will not be finally known until meetings and negotiations with the unions and the Works Council are complete, we expect to incur approximately $22 million in restructuring charges, including an estimated $20 million in cash severance payments and non-cash charges of $2 million, to be recorded beginning in the second quarter of 2009 through the planned completion of the actions in the fourth quarter of 2009.
Certain of the above statements regarding employee reductions, restructuring expense, resulting benefits and the timing of those actions constitute forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that these forward-looking statements will be accurate since they are based on many assumptions which involve risks and uncertainties. The following important factors could cause the estimated employee reductions, earnings impacts and restructuring expenses to differ: changes in economic or industry conditions; issues arising from rationalization of operations; and other risks identified in our Securities and Exchange Commission reports and public announcements. We caution you not to place undue reliance on any forward-looking statement, and we undertake no obligation to update any forward-looking statements to reflect future events or developments.
On April 20, 2009, we issued a press release announcing our plan to divest the finished tipping production facility in Malaucène, France (attached hereto as Exhibit 99.1).
This excerpt taken from the SWM 8-K filed May 26, 2006.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 26, 2006, Schweitzer-Mauduit announced a decision to cease the production and sale of décor papers made at its Eagle Mill in Lee, Massachusetts. The Company is working with its customers to continue to provide product until those customers can secure alternative décor paper supply. From its initial customer contacts, the Company expects to cease production by approximately September 1, 2006.
In 2001, the Company decided to enter the décor papers market as part of a strategy to diversify into non-tobacco papers. Décor papers are sold to customers who saturate and laminate the paper to particleboard for use in furniture, cabinet and flooring applications. Although the Company has been successful in qualifying its products with its customers, the Company has not been able to achieve an acceptable manufacturing cost structure or develop and manufacture décor papers that generate acceptable profitability.
With this decision, the Company will cease operation of a paper machine at the Eagle Mill in Lee, which will result in accelerated depreciation and other expenses totaling approximately $5 million, including cash costs of approximately $1 million that are partly related to employee severance expenses. This cessation will result in the loss of approximately 25 jobs in total at the Lee Mills and at the Companys U.S. headquarters in Alpharetta, Georgia. Of the $5 million of total expenses, approximately $2 million is expected to impact second quarter 2006 operating results and approximately $3 million is expected to impact third quarter 2006 operating results. The Companys ongoing operating results are expected to improve by approximately $1 to $2 million annually as a result of the exit of the décor papers business and associated restructuring activities.