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Xerium Technologies Breaks Ground for New Paper Machine Clothing Plant in Vietnam
YOUNGSVILLE, N.C.-(Business Wire)-January 25, 2008 - Xerium Technologies, Inc. (NYSE: XRM), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, announced today that the official groundbreaking ceremony for its state-of-the-art paper machine clothing factory had taken place 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.
ABOUT XERIUM TECHNOLOGIES
Xerium Technologies Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries around the world, Xerium has approximately 3,800 employees.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements that are not based on historical fact, including without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "indicates," "suggests" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include, but are not limited to: (i) adverse changes in general economic or market conditions, including without limitation those affecting the paper industry; (ii) labor unrest; (iii) currency and interest rate fluctuations; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost changes and the volume and mixture of product and service revenues; (vi) transitions to new products, the uncertainty of customer acceptance of new product offerings and technological and market change; (vii) the lack of any requirement to make dividend payments on our common stock at any particular level or at all; (viii) limitations imposed by our credit facility on the amount of dividends we are permitted to pay; (ix) our high degree of leverage and significant debt service obligations, together with our dividend policy, may cause us to have insufficient cash to fund growth and unexpected cash needs; (x) our credit facility contains restrictive covenants that will require us to improve our financial performance over time to remain in compliance therewith; (xi) war or acts of terrorism in any country in which we conduct business; (xii) changes in U.S. or foreign government policies, laws, regulations and practices, including without limitation those regarding the repatriation of funds and taxes; and (xiii) those other risks described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K/A for period ended December 31, 2006 filed with the Securities and Exchange Commission and subsequent SEC filings. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such forward-looking statements after the date of this release.
