Polymer Group Start Work on New Multi-Beam Spunmelt Line in Mexico

Polymer Group, Inc. (PGI) today commemorated the start of construction at its approximately $50 million plant expansion in San Luis Potosi, Mexico, with ground breaking ceremonies attended by government officials, and business and community leaders.

The new state-of-the-art, multi-beam spunmelt line will produce high-barrier materials for hygiene and medical applications to meet growing demand from customers in North America, and increase capacity by approximately 15,000 metric tons.

Governor of the State Marcelo De Los Santos spoke at the ceremonies along with company executives about the continued growth of PGI in the region, where it is the market leader. He was joined by Carlos Barcena, Secretary of Economic Development and Jorge Dominguez, Secretary of Labor.

The plant expansion is expected to create more than 40 highly-skilled jobs and also have a far-reaching positive economic impact on the community through its supplier relationships. PGI currently employs approximately 400 people at the plant where it is known for its stability as an employer.

"The high-quality skilled local workforce and support from the government has enabled PGI to grow and thrive at this plant since we began operations in 1994," said PGI's vice president and general manager for Latin America, Rolando Dominguez. "I would like to thank Governor of the State Marcelo De Los Santos and the other dignitaries, and guests for joining us today to mark PGI's continued growth here."

PGI is building an expansion at its plant in Zona Industrial del Potosi that will house the new Reifenhauser REICOFIL 4 line. In addition to serving customers in Mexico and the U.S., it also is a gateway for PGI to supply its products to Central America and the Caribbean. The new line is expected to begin production by mid-2009.

The line will feature the latest technology and produce high-quality, lightweight, strong fabrics that are used in fine denier back sheet, leg cuffs and materials that go into other parts of diapers, as well as fabrics that provide high-barrier protection and comfort for medical garments.

The plant began operations in 1989 as Bonlam S.A., a subsidiary of Cydsa S.A. de C.V. Since PGI purchased the plant in 1994, the company has made several expansions and major investments at the facility, more than quadrupling overall employment.

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