Expected To Produce Annual Savings of $55 - $60 Million

Polymer Group Inc, the world's third largest nonwovens producer, today announced that it is finalising details of a restructuring plan that will result in job losses for 14 per cent of its worldwide workforce.

The programme is aimed at generating annual savings of between $55-60m from reduced overhead expenses, improved manufacturing efficiencies, lower payroll costs and a reduction in trial costs.

Jerry Zucker, Polymer Group chairman, president and CEO said: "This is an important step in positioning Polymer Group to return to growth and profitability in the coming quarters. This decision will result in a repositioning of assets throughout our system, reducing much of the trial, qualification and commercialisation costs of our Apex programmes and a material reduction in our manufacturing costs.

"The restructuring programme will commence in the fourth quarter and will continue to ramp-up throughout 2002."