Schweitzer-Mauduit to cut jobs at France mill

Schweitzer-Mauduit International cutting 105 jobs at French mill, will save $8M per year

• On 11:38 am EDT, Friday September 11, 2009

ALPHARETTA, Ga. (AP) -- Paper maker Schweitzer-Mauduit International Inc. said Friday it plans to cut 106 jobs at a French paper mill in a bid to reduce its costs.

Cutting 15 percent of the staff at the Papeteries de Mauduit SAS mill, which is based in Quimperle, France, will result in annual pre-tax savings of about $8 million, or 36 cents per share, with roughly half of this savings to be realized during 2010.

The move also is expected to result in cash severance expenses of about $14 million through the planned completion of the actions in the second quarter of next year.

The company's existing credit facilities and internal cash flow will cover the estimated $14 million in projected cash severance expenses, which are expected to be paid by the end of 2011.

Restructuring expenses will be recorded beginning in the third quarter of 2009 and continue to be recorded through the expected second quarter 2010 completion of the staff reductions, the company said.

The company also said it anticipates no further restructuring efforts at its French operations, but does expect it might idle one of its higher cost paper machine between now and early 2010.

Shares fell 5 cents to $54.53 in morning trading.