Sterling Exits Textile Commodity Fibers

February 21, 2001 — Sterling Chemicals, Inc. is announcing its withdrawal from the traditional commodity textile business. The announcement comes after recent rationalization and cost reduction programs have failed to return the business to profitable levels.

Virtually all commodity textile categories will be eliminated from Sterling Fibers offerings. The company will continue to offer natural MicroSupreme , and then technical business products including CFF , Conductrol , BloFresh , and WeatherBloc .

This withdrawal from commodity textiles will begin impacting customers over the next several months as inventory levels are depleted. Sterling Fibers will make every effort to provide as smooth a transition as possible for its current customers.

Impacted by the announcement will be a reduction of about 160 jobs in the Pace manufacturing facility as well as closing its offices in North Carolina, New York, New Jersey and Marketing function in California. The timing of the reductions will be in mid March once we meet customer transition needs. Operation of the Santa Rosa, Florida facility will continue but at a reduced production and staffing level. Remaining will be about 35 jobs at the Santa Rosa site that are required to make and market the technical products.

The cause for the reduction is a major trend facing the US textile industry, that of sourcing finished goods offshore, coupled with much higher energy and raw material costs over the last year.

Sterling Fibers is concentrating its efforts oil products where it has a technology or performance advantage over commodity products.

SOURCE: Sterling Fibers, Inc.

Web site: http://www.sterlingchemicals.com