Press Release: Kodak Announces Manufacturing Capacity Reductions in U.S.
And China
Aug. 25, 2005--Eastman Kodak Company announced
actions to consolidate its worldwide manufacturing operations as part of its
ongoing program to rapidly adjust to the accelerating decline in demand for
consumer film and photographic paper.
Pursuant to a restructuring program originally
announced in January 2004 and expanded last month, and consistent with
marketplace demand, current actions include:
-- Consolidate color photographic paper manufacturing
for North America at plants in Windsor, Colo., and Harrow, England, resulting in
the closure of an operation in Rochester by the end of October;
-- Close by year-end an operation in Rochester that
recycles polyester waste and part of an operation that processes polyester raw
material in the manufacturing of Estar polyester film base. Kodak will purchase
finished raw material and will contract to have polyester waste recycled by
firms with resource recovery expertise;
-- Reduce manufacturing capacity for consumer film
products at its plant in Xiamen, China.
None of these actions will impact Kodak's ability to
continue serving worldwide customers with traditional film and paper products.
Together, these actions will result in a reduction in employment of about 900
positions, more than half in Rochester. Charges totaling about $153 million,
primarily related to asset write-offs and separation benefits, will be taken
related to the actions.
"These actions are regrettable because they impact our
Kodak people whose performance has been outstanding, but they are necessary in
light of the accelerated declines in consumer film and paper," said Daniel T.
Meek, director of Global Manufacturing & Logistics. "We will continue to
move aggressively to competitively position our operations and adjust our
manufacturing footprint and capacity for the marketplace
realities."
Meek noted that Kodak is committed to strengthening
its leadership position in the three segments of the imaging market: consumer,
health and graphic communications, both traditional and digital.
Posted: Thu - August 25, 2005 at 08:45 AM