Neenah, Inc. Takes Further Steps to Accelerate Annual Revenue Growth, Profitability, and Value Creation | 2021-07-02 | Press Releases
Neenah, Inc. (NYSE: NP), a leading global manufacturer of specialty materials focused on filtration media, specialty coatings, engineering materials, and imaging and packaging, today announced a number number of operational changes in line with the company’s commitment to accelerate growth, strengthen margins and create value for customers and shareholders.
- Invested $ 13 million in new non-stick coating capacity to support its growing specialty coatings business and the recent acquisition of ITASA
- Restart of an inactive fine paper and packaging asset to support its premium packaging business
- Cessation of operations at its Appleton, Wisconsin plant
âThese actions will generate accretive value and accelerate efforts towards our goal of long-term revenue growth of 5% per year with strong and consistent margins. Investing in coating capacity for non-stick coatings and starting an idle asset in support of premium packaging is aligned with our strategy to expand our capabilities to larger and growing markets with customers who value unique and premium solutions, âsaid Julie Schertell, President and CEO of Neenah’s. âClosing a facility is always a difficult decision and not a decision we take lightly. This decision is not a reflection of our employees or their efforts, as the team has always worked hard to overcome obstacles, improve safety and achieve results. We will continue to provide innovative filtration solutions and serve customers at our other manufacturing facilities in Europe and North America. â
Schertell added, âI have no doubts that these footprint changes will generate immediate value for our shareholders as we continue to transform Neenah into a faster growing, more profitable company. We remain focused on investing for growth, maintaining a strong balance sheet and delivering meaningful returns to shareholders. â
The financial implications associated with the closure of the Appleton plant include an estimated annual EBITDA profit of $ 7-8 million, excluding estimated one-time cash closure costs of $ 5-6 million and non-recurring non-cash charges of approximately $ 45 million. Annual revenues are expected to decrease from $ 20 million to $ 25 million as of closure. The facility is expected to be closed by the end of the third quarter of 2021.
The non-stick coating coating capacity is expected to enter service in mid-2023, providing the capacity needed to fuel growth in North America and Latin America. The Fine papers and packaging asset should be restarted in the fourth quarter of 2021.
Additional information regarding these announced actions will be provided when Neenah, Inc. issues its second quarter 2021 earnings press release ahead of the market opens on Thursday, August 5, followed by a earnings conference call with investors at 11 am ET that day.
About Neenah, Inc.
Neenah is committed to ensuring the growth of manufacturing for its customers, end users, shareholders and employees. With manufacturing facilities in North America, Europe and Asia, we are one of the world’s leading manufacturers of specialty materials serving customers on six continents, with headquarters in Alpharetta, Georgia. We are focused on the growth of filtration media, specialty coatings, engineering materials and imaging and packaging. Our materials are found in a variety of products used daily, such as transportation and water filters, premium spirits packaging, technology and beauty products, industrial labels, tapes and abrasives, and more. digital printing for high-end clothing. For more information, please visit www.neenah.com
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