Fire Idles Airlaid Line at Glatfelter Gatineau Mill Two-Four Weeks
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Glatfelter, York, Pa., USA, this week reported that it has completed a preliminary assessment of the damage resulting from an August 7 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 hr. 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.
Glatfelter's U.S. operations include facilities in Spring Grove, Pa, and Chillicothe and Fremont, Ohio. International operations include facilities in Canada, Germany, France, the U.K, and the Philippines, a representative office in China, and a sales and distribution office in Russia.
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