Intertape Polymer Group announces plant closure and transfer of production

Intertape Polymer Group Inc. is closing its Richmond, Kentucky facility, and will be transferring its shrink film production business from the company's Truro, Nova Scotia facility to its Tremonton, Utah plant. The company believes this decision allow it to further optimize its manufacturing footprint and generate significant annual savings. All dollar amounts are US denominated unless otherwise indicated.

The Richmond facility, which manufactures tape products, will be closed in part due to productivity improvements in other production facilities. The majority of production will be transferred to Intertape's Carbondale, Illinois facility. The shrink film business in Truro will be transferred to Tremonton which will create one center of manufacturing excellence in North America for this business. Woven fabric products will continue to be produced at Truro. These changes are expected to be completed in late 2012 and early 2013.

"Considering competitive pressures, market conditions and the volatility of input costs, we are continuously reviewing and analyzing all aspects of our operations. With this plant closure and transfer of production, we expect a positive contribution to Adjusted EBITDA of more than $5 million in 2013 and approximately $6 million in each subsequent year. The process will be seamless to customers and we do not anticipate any significant impact on our revenues," said Intertape's President and CEO, Greg Yull.

As a result of these initiatives and other smaller aspects of its manufacturing rationalization plan, an allocation of $14-$16 million is expected to be recorded in the second quarter of 2012 primarily related to property, plant and equipment, and severance.