PolyOne Breaks Ground for Expansion of West Coast Colorants Service
November 7, 2001
- Will Add $4.3 Million in New Equipment and Nearly Double Capacity
- Enhanced Customer Service Benefits
- Western Region Warehousing Network Expands
GLENDALE, Arizona (November 8, 2001) – PolyOne Corporation (NYSE: POL), the world's largest polymer services company, today launched an ambitious expansion of its color compounding plant here. The expansion will almost double production output, improve rapid response capabilities by focusing on a customer-specific small and medium lot order range, and greatly enhance customer service for the Western region.
PolyOne officials held a ribbon cutting ceremony today for the expansion before a crowd of company people, citizens, officials, and area dignitaries. The plant will grow from its present 25,000 sq. ft. to almost 60,000 sq. ft. with about 60 percent of the new space devoted to manufacturing and 40 percent to warehousing. The current 53-member workforce will be expanded, and new offices and training rooms will be installed as well. Many new employees will be PolyOne people transferred from other company colorant facilities.
The Glendale expansion is part of PolyOne's Triple Crown initiative, a two-year program of investment in the technology and manufacturing assets of the company's North American Plastic Compounds and Colors (PCC) business. On August 3, 2001, PolyOne announced that it is establishing eight Centers of Manufacturing Excellence (CME) for color compounding throughout the United States and unveiled plans to invest $18 million to create the new color CMEs. The Glendale facility is one of the eight.
PolyOne Invests in New Colorant Manufacturing Equipment
PolyOne will invest $4.3 million in new high-output, high-performance production lines that will almost double capacity for the Glendale CME by January 2002. The new plant will produce color concentrates for polyolefins, styrenics, vinyl and other major polymers for several important markets, including packaging, custom molding, custom profiles, and custom sheet. It will serve customers in the Western region – an area west of the Rocky Mountains, north to Canada and south to Mexico. Because of the new equipment and production efficiencies of the expanded plant, Western region customers will typically see a seven-day-or-less turnaround on orders.
Rapid Turnover of Small Order Sizes
“We will significantly expand our services for the Western region for order sizes ranging between 50 and 5,000 pounds,” says Rod Myers, PolyOne's Glendale plant manager. “Currently, we handle around 5,000 orders of this size each year. By the end of next year, we expect that to increase this number to more than 10,000.
“Rapid turnaround of small and medium order sizes is our forte,” Myers says. “With the efficiencies we will gain at Glendale after the expansion is complete, customers will see a marked improvement in getting their materials from us precisely when they need them.”
“Many PolyOne customers order small and medium lot sizes,” says Lance Mitchell, PolyOne Group Vice President of Plastic Compounds and Colors. “They want to buy colorants in the quantities they need for immediate use, when they need them. The expansion announced today shows that PolyOne is investing to serve these customers at a time when others in our industry are not. We're putting our money where our commitment is--in our customers”
Quality control will also be increased at the Glendale facility, which received ISO 9001 certification in 1994, and will include hiring a full-time, on-site ISO professional to help ensure premium quality.
To support the Glendale expansion, PolyOne is also realigning its Western region warehousing and distribution network. By the end of 2002, six new resin distribution centers will be located throughout the Western region to support colorant, engineered materials, vinyl compound, and PolyOne Distribution customers. “Enhanced regional warehousing on the West Coast is also a key ingredient in our commitment to further improve our rapid response and delivery times, since it brings materials much closer to the customer,” says Mitchell.
“The Glendale plant has been linked to all our other CMEs so we can seamlessly use their production capabilities for manufacturing material very quickly. Together with the CME network that PolyOne is building across North America, we expect to have a web of polymer colorant centers to quickly service our customer's needs anywhere they may be now or in the future. This is only the start for PolyOne as we celebrate the first year of our new company. Look soon for much more from us “ Mitchell concluded.
PolyOne Corporation, with revenues of nearly of $3 billion, is an international polymer services company with customer-focused operations in thermoplastic compounds, specialty resins, specialty polymer formulations, engineered films, color and additive systems, elastomer compounding and thermoplastic resin distribution. Headquartered in Cleveland, Ohio, PolyOne has manufacturing sites in North America, Europe, Asia and Australia, and joint ventures in North America, South America, Europe, Asia and Australia. Information on the Company's products and services can be found at www.polyone.com
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Dennis A. Cocco
Chief Investor & Communications Officer
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Private Securities Litigation Reform Act of 1995
This release contains statements concerning trends and other forward-looking information affecting or relating to PolyOne Corporation and its industries that are intended to qualify for the protections afforded “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements for a variety of factors including, but not limited to: (1) the risk that the former Geon and M.A. Hanna businesses will not be integrated successfully; (2) an inability to achieve or delays in achieving savings related to the consolidation and restructuring programs; (3) unanticipated delays in achieving or inability to achieve cost reduction and employee productivity goals; (4) costs related to the consolidation of Geon and M.A. Hanna; (5) the effect on foreign operations of currency fluctuations, tariffs, nationalization, exchange controls, limitations on foreign investment in local businesses, and other political, economic and regulatory risks; (6) unanticipated changes in world, regional or U.S. PVC or other plastics consumption growth rates affecting the Company's markets; (7) unanticipated changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online in the PVC, VCM, chlor-alkali or other industries in which the Company participates; (8) fluctuations in raw material prices and supply, and in particular fluctuations outside the normal range of industry cycles; (9) unanticipated production outages or material costs associated with scheduled or unscheduled maintenance programs; (10) unanticipated costs or difficulties and delays related to the operation of the joint venture entities; (11) lack of day-to-day operating control, including procurement of raw material feedstocks, of the OxyVinyls partnership; (12) lack of direct control over the reliability of delivery and quality of the primary raw materials utilized in the Company's products; (13) partial control over investment decisions and dividend distribution policy of the OxyVinyls partnership.