Wellman, Voridian Sign Agreement to Increase PET Production

Wellman, Inc., and Voridian Co. announced the signing of a bi-lateral strategic purchasing agreement resulting in increased North American PET bottle resin capacity.

Under the agreement, Wellman will provide amorphous resin capacity from converted fiber chip lines at its Palmetto, S.C. facility while Voridian will supply solid-stating capacity from multiple North American sites. The resulting PET products will be divided between the two companies and each company will market and sell the resulting PET resin independently. By matching existing assets, the companies intend to increase PET resin capacity by up to 260 million pounds per year. Initial production is scheduled to begin in the first quarter of next year.

Tom Duff, Wellman's chairman and CEO, stated, "This agreement between Wellman and Voridian allows both parties to utilize their individual assets in the most effective and efficient manner. This will result in a significant expansion of PET resin supply at low capital cost to meet growing demand in the NAFTA region."

"This is another example of Voridian's smart-growth strategy," said Allan Rothwell, president of Voridian Co. "We plan to continue pursuing these types of low-cost, capital-efficient options as we grow Voridian."

"The capacity we're adding will allow Voridian to serve its expanding customer base with the kind of capital efficiency and speed to market that's needed in this business," said T.A. Smith, vice president of Voridian's Polymer Business Group.

Mike Dewsbury, Wellman's Vice President PET Resins U.S., stated, "The PET resin produced by this agreement, between two of the industry's most respected suppliers, will provide Wellman's customers with the high quality and performance they expect from us."