Acordis to Close Rayon Plant

April 3. 2001, 2001 — Acordis Cellulosic Fibers, Inc. today announced the closure of its Mobile Alabama, rayon manufacturing facility. All 324 jobs on the site are affected.

Dick Doidge-Harrison, CEO of ACFI, commented as follows:

“We very much regret the need to take this step which has been forced upon us by a combination of shrinking US demand, adverse exchange rates, and dramatic; increases in the cost of key raw materials and energy which we have not been able to recover in improved sales prices. We had hoped to be able to secure a more positive outcome within the context of a joint venture with Lenzing in the US, but conditions have continued to deteriorate such that Acordis has had to take a decision now, We will be working closely with customers to seek to exit the market-in an orderly manner and minimize any disruption to them ”

Due largely to the impact of imported garments, yarns and fabrics on the domestic textile industry the consumption of Rayon in the US has declined from 390 million pounds in 1990 to about 190 million pounds in 2000. This declining trend Is continuing In 2001. The Mobile Rayon facility has been progressively restructured during the last decade, dramatically reducing overheads, improving raw material conversion efficiencies, and greatly increasing productivity. However, these measures have not succeeded in restoring profitability in a climate of declining demand and contracting margins

The Tencel facility on an adjoining site is not affected by this decision

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