Oct 7 2004
Intertape Polymer Group Inc. today announced that it is closing its Cumming, Georgia facility, as part of the Company’s ongoing objective to lower costs, enhance customer order fulfillment and effectively optimize inventory investment.”
Commencing in early 2002, the Company undertook a number of initiatives to improve its efficiency and optimize its asset usage. The new state-of-the-art regional distribution center (RDC) in Danville, Virginia is a prime example. “In operation since February, the Danville RDC has exceeded our expectations for performance and has enabled us to take this next step in our ongoing process of asset optimization much earlier than we had initially anticipated,” said Intertape Polymer Group Inc. (IPG) Chairman and Chief Executive Officer, Melbourne F. Yull.
“The Company expects to realize annualized savings of approximately $1.6 million with this closure,” said IPG’s Chief Financial Officer, Andrew M. Archibald, C.A. “These savings are in addition to annualized logistics savings of approximately $2.0 million that we currently expect to realize with the transfer of other distribution activities to the new Danville RDC earlier this year.” There will be a one-time charge to fourth quarter 2004 earnings of approximately $2.9 million, of which approximately $0.7 million is non-cash. The transfer of operations is expected to take place over the course of the next three months and should be completed in January 2005.
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