Indiana Company to Close Mississippi Plant

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Shelbyville-based Knauf Insulation North America says it will cease production at a facility in Mississippi. The company says the Mineral Wells plant employs more than 100 people. Knauf has also announced plans to expand an operation in Alabama. October 10, 2014

News Release

SHELBYVILLE, Ind. (October 9, 2014) - Today, Knauf Insulation gave notice to employees in its newly-acquired plant in Mineral Wells, MS that it is ending production at the site. Knauf Insulation currently employs 110 people at the plant.

Following is a statement from Knauf Insulation North America CEO Mark Andrews regarding this move:

"In the two months since the acquisition of Guardian Insulation, we have conducted a detailed analysis of our new footprint. The analysis examined the investments required to upgrade and expand both the quality and quantity of product being manufactured in our facilities.

Unfortunately, the results of this analysis have led us to make the difficult decision to close the Mineral Wells plant. This morning, we started sharing the news with Mineral Wells employees that we are ending all production at the plant today.

The main drivers of this decision were the structure and condition of the Mineral Wells facility. No reasonable amount of capital investment in the plant can bring it up to the standards our customers expect, so we are forced to take this action. This closing will allow us to direct future capital investment to our other remaining facilities where we believe customer expectations in the growing Insulation market can be readily fulfilled.

We recognize the devastating effect this will have on our valued employees at Mineral Wells. It is important for me to make this clear: The Mineral Wells shutdown is not a reflection of the quality of employees at the facility or their dedication to the business. The current and long term cost to continue operations in Mineral Wells are simply not sustainable.

Where opportunities exist at other plants, efforts will be made to make those positions available for qualified employees. For those unwilling or unable to make that kind of change, the company will honor all of its commitments, provide pay and benefits for 60 days, and endeavor to provide local outplacement support and other coordinated services with the state of Mississippi.

We are committed to retaining and serving all of our customers - including those served by the Mineral Wells facility - out of our plants in Albion, MI, Inwood, WV, Lanett, AL, Shelbyville, IN and Shasta Lake, CA.

It is a difficult decision to close a plant. We are a family owned business that is very proud of our products, our employees and the communities we serve. It is with sincere regret that we must take this action."

Mr. Andrews also announced that Knauf Insulation plans to upgrade and expand their production footprint to respond to growing market demand. With the assistance of incentives from the State of Alabama, Knauf Insulation will double production at the Lanett, AL facility in the first half of 2015. Knauf Insulation also plans to make significant investments in their recently-acquired Guardian facilities to ensure they have the technology, capability, and capacity to meet the needs of the market. Details of those investments will be announced as soon as discussions with the relevant state authorities are concluded.

Knauf Insulation is a leading global manufacturer of thermal and acoustical insulations for residential, commercial, industrial, OEM and metal building applications. For more information about Knauf Insulation sales and products, visit http://www.knaufinsulation.us/, write to Knauf Insulation, One Knauf Drive, Shelbyville, IN 46176 or call 800-825-4434 ext. 8212

Source: Knauf Insulation North America