Glatfelter (“Glatfelter”) GLT announced today that it has completed a
preliminary assessment of the damage resulting from an August 7, 2013 fire at
its facility in Gatineau, Canada. The fire partially damaged one of the two
airlaid lines at the facility. There were no injuries or environmental impact.
The damaged airlaid line is expected to be down approximately two to four
weeks.
The finishing and shipping operations were not impacted by the incident and
shipment of customer orders resumed within 24 hours. Due to capacity available
at Glatfelter's other airlaid facility in Germany, the Company expects this
incident will have a modest impact on third quarter shipments reducing them by
approximately 600 to 1,000 metric tons. The Company is working with customers
to minimize the impact of this interruption.
An assessment of the costs for the impact of inventory loss, equipment damage,
and clean up is underway. Based on its preliminary assessment, the Company
expects no significant financial impact from this incident as it is expected
to be covered by insurance, subject to a deductible of $750,000. However,
there may be an impact on third quarter results due to lower shipments and the
timing of recognizing the business interruption portion of the insurance
recovery under the applicable accounting standards.
The Gatineau mill produces absorbent nonwoven materials on two airlaid
machines for the feminine hygiene and specialty wipes markets. Approximately
265 Glatfelter employees work in this mill.
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