Wellman Nears Completion of Resin Unit Conversion in South Carolina

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Wellman Incorporated (NYSE: WLM) (Shrewsbury, New Jersey) is nearing completion of a resins unit conversion to produce bottle grade PET (Polyethylene Terephthalate) resins at their Darlington, South Carolina site called the Palmetto Plant. The project consists of converting an existing production unit that formerly produced resins for PET chips for use in the production of plastic parts and other products.

Earlier this year Wellman signed a deal with Eastman Chemical Company (NYSE: EMN) (Kingsport, Tennessee) to provide Eastman's Voridian business unit with PET capacity beginning early next year. Wellman's Palmetto plant produces approximately 500 million pounds per year of polyester staple fiber and with the completion of this project next month, 500 million pounds per year of PET bottle grade resins.

Numerous plant closures within the textile industry on the East Coast over the last year have plagued many fiber producers. Wellman's ability to diversify its Palmetto facility with PET resin production, a currently strong market, ensures the profitability of the plant site. Beyond the completion of this conversion there are several small capital upgrades and retrofits planned for 2003 that will increase the efficiency and production of the PET resins.