Richmond, Virginia -- Performance Fibers Holdings Inc. will cease manufacturing at its Winfield and Scottsboro, Alabama, tyre-fabric processing plants because of reduced demand from US tyre 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 reduced 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 tyre customers in North America resulted in lower demand for tyres.
CEO Gregory Rogowski said market conditions have prevented the firm from fully utilizing the plants since acquiring 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 unionised employees.
From Tire Business (A Crain publication)
Press release from Performance Fibers