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January 31, 2008 |
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XERIUM TECH: Opens Paper Machine Clothing Factory in Vietnam Xerium Technologies, Inc. reported its official groundbreaking ceremony for its state-of-the-art paper machine clothing factory in Ho Chi Minh City, Vietnam. At the event, which was attended by more than 100 dignitaries from throughout the region, Cheryl Diuguid, President of Xerium Asia, said, "With this new facility, Xerium is building on a long, successful history of conducting business in the Asia region. Our investment in this facility, and specifically in Vietnam, is an important step in our efforts to build on this history and increase our participation in this important and growing paper market. Xerium has been a leading participant and valued paper machine clothing supplier to Asian paper producers for decades. In addition to this Huyck. Wangner facility we are building, we have also expanded our roll covers business to pursue additional growth opportunities in this segment of the Asia market. In November 2007, Xerium acquired a local roll covers business with two manufacturing operations in China, and we expect that the acquired operation will serve as the base for our Stowe Woodward China business." She added, "We made the decision to invest in Vietnam because we believe this country provides us with excellent support for all our critical success factors, including proximity to our major customers, ease of logistics, technical capabilities, education level of the local workforce, variable and manufacturing overhead costs, government support and interest, local market opportunities and expansion options. To put it simply, we wanted an "Ease of Business" environment and we are confident that we have found it here." The facility is being constructed in the My Phouc Industrial Park, 40 km northeast of Ho Chi Minh City in the region of Binh Duong. This facility, which is expected to begin production in the second half of 2008, is expected to employ more than 150 people at full production. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/ -- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings include the company's: Corporate family rating at B1; Guaranteed senior secured term loan B at B1; and Guaranteed senior secured revolving credit facility at B1. |
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