New organization, divisional restructuring announced
Spring Grove, PA Aug. 7, 1998: In order to meet the challenges
of the changing global markets in which it operates, the P. H. Glatfelter Company,
headquartered in Spring Grove, Pennsylvania, today announced a new corporate
organizational structure and plans to reduce the size of the workforce at its Ecusta
operation in Pisgah Forest, North Carolina.
P. H. Glatfelter Company is a producer of printing and writing, tea bag,
tobacco and other specialty papers. In addition to its North Carolina facility, the
Companys U. S. operations include facilities in Spring Grove, Pennsylvania, and
Neenah, Wisconsin. International operations include facilities in Germany, France, the
Philippines, Australia and Canada.
" We have recognized the need to retool our Corporate
organizational structure to meet short-term business objectives as well as reposition our
Company for future growth," said George H. Glatfelter II, President and Chief
Executive Officer. Those short-term objectives include an aggressive emphasis on cash
generation, continued support of the Companys core product lines, new initiatives in
support of expedited development of engineered papers and a strong approach to the
integration of the newly acquired Schoeller & Hoesch subsidiary.
"Achieving these objectives is made more challenging due to the
unfavorable market conditions currently existing for the Companys products,"
Mr. Glatfelter added. "It is therefore essential to focus the new management team on
The plan to reduce the Ecusta Divisions workforce is the result of
fundamental changes in the tobacco markets into which the Company sells its tobacco
papers. The Company anticipates that market conditions for its tobacco papers will remain
unfavorable for the foreseeable future. Accordingly, the Ecusta Division is being
restructured with the intent to reduce the annual costs of salaried and hourly payroll and
benefits. The first step in the Divisions cost reduction process for salaried
employees will be to offer a voluntary early retirement enhancement program. The program,
which is being announced to Division employees today, is being offered to active eligible
salaried employees age 55 and older. The Company expects to generate annual salaried cost
savings of approximately $3.5 million for a one-time expense of approximately $2.2
million. The cost savings and nature of
workforce reductions for hourly employees will depend upon the outcome of negotiations
that are scheduled with representatives of Local 1971 of the United Paperworkers
The Companys organizational changes, which go into effect
immediately, are as follows:
- Robert S. Lawrence, Vice President and General Manager of the
Ecusta Division, will assume additional corporate responsibilities focused on the
worldwide marketing of tobacco papers while continuing his oversight of the manufacturing
and sales functions of the Ecusta Division. Mr. Lawrence, 58, will report to Mr.
- Robert L. Miller, Vice President for Administration, has been
promoted to Vice President - International Business. Mr. Miller, 52, will relocate to
Germany and will focus on identifying and maximizing the synergies between
Glatfelters Schoeller & Hoesch subsidiary, headquartered in Germany, and
Glatfelters other operations. He will also report to Mr. Glatfelter.
- Edward J. Gillis, Vice President - Marketing, Glatfelter Division,
has been promoted to Vice President - Business Development. Mr. Gillis, 51, will expedite
the development and commercialization of new technical specialty products. In this
capacity, Mr. Gillis will report to Mr. Glatfelter.
- Robert S. Wood, Secretary and Treasurer, has been promoted to Vice
President - Administration and Secretary. Mr. Wood, 40, will assume responsibility for
corporate environmental and public affairs, materials management, benefits and
compensation, and aviation in addition to his corporate secretarial duties. He will report
to Robert P. Newcomer, Executive Vice President and Chief Financial Officer.
- C. Matthew Smith, Corporate Controller, has been promoted to Vice
President - Finance. Mr. Smith, 40, will be responsible for all corporate accounting,
legal and treasury functions as well as for information systems. He will report to Mr.
- Leland R. Hall, Director of Operations, Glatfelter Division, has
been promoted to Vice President and General Manager, Glatfelter Division. Mr. Hall, 60,
will assume responsibility for all manufacturing and sales functions for the Glatfelter
Division, which is comprised of the Companys mills in Spring Grove and in Neenah,
Wisconsin. He will report to Mr. Glatfelter.
- Robert L. Inners II, Spring Grove Mill Manager, has been promoted
to Director of Operations, Glatfelter Division. Mr. Inners, 40, will be responsible for
mill operations and quality management at the Spring Grove and Neenah mills. He will
report to Mr. Hall.
- Dante C. Parrini, National Sales Manager, Glatfelter Division, has
been promoted to National Sales and Marketing Manager, Glatfelter Division. Mr. Parrini,
33, will assume direct responsibility for the Sales, Marketing and Customer Service
efforts for the core markets of printing and writing papers produced by the Glatfelter
Division. He will report to Mr. Hall.
- Phillip M. Keener, Paper Division Superintendent, has been
promoted to Spring Grove Mill Manager. Mr. Keener, 46, will be responsible for overall
mill operations and will report to Mr. Inners.