https://www.johnsonvilleschistory.org/files/original/c3e7537d926901255725d3ae56b041fb.pdf a18f49268327dd27b87f1a5da78e959b PDF Text Text ® December, 1991 WELLMAN, INC. Newsletter W ELCOME to the very first issue of our company-wide quarterly newsletter! As Wellman continues to grow in the Nineties, it becomes apparent that we must combine the efforts of our individual divisions and begin to share information throughout the organization. As we continue to merge our diverse cultures, it is important to understand what is unique about each of us. And, as we begin to work more closely with one another and form relationships, communicating our strengths and successes becomes an integral part of our continued growth. The goals of the newsletter will be four-fold. First, to update employees on company events and activities. Second, to make employees aware of different aspects of the company and the business. Third, to provide a forum to state the company's direction and values, and fourth, to promote company-wide unity. Relative to our company values, take special note of the feature article on Quality. Each and every one of you will be hearing a lot about Quality, going forward. We have an extraordinarily strong commitment to quality products and quality services, and these quality-driven values will keep us in a leadership position well into the 2 Jst century. We hope everyone will take an active interest in the newsletter. We really need everyone's help in order for it to be enjoyable and effective. If you have an interest in contributing a story, or just a story idea, contact your local correspondent (identified on the back page of this newsletter). But first, we need to name the newsletter; and we are offering TEN SHARES OF WELLMAN STOCK to the person who comes up with the best idea. An impartial jury will judge the entries and make this Stock Award early in March. So, put on your thinking caps, get involved, and send us your entries no later than February I, 1992. The rules are simple; just fill in the blanks on the entry form on the last page and send it in . TEN SHARES OF WELLMAN STOCK COULD BE YOURS! Iv-TOM DUFF President. Chief Executive Officer �Leading the Way with Quality As A MEANS of remaining competitive in a rapidly-expanding global economy. Wellman, like like many other American companies, is focusing on an increased quality improvement process. A recent federal study on the impact that these quality management processes have on the companies that have adopted the principles shows that considerable improvement has been made in the following areas : employee relations, productivity, customer satisfaction, market share, and profitability. Wellman senior management recently attended a seminar on quality improvement. The objective of the seminar, conducted by OualPro, a Knoxville, TN consulting firm, was to highlight the purpose, requirements and rewards of the quality improvement process. Judy Langan ECO EXPO T HE AGE OF the environmental consumer is upon us, and nowhere was that more apparent than at the ECO EXPO held at the Javits Center in New York. Judy Langan, Shella Friedberg and JIii Harnlck, from the the Fibers Division, "manned" a Wellman booth at the show and talked with what seemed to be hundreds of "environmentally conscious" consumers, manufacturers, educators, retailers and even a reporter from National Public Radio, BACK ROW: Bob Magee, Gerry Fishbeck, Audie Dupuis, Bill Harding, Bill Basemore, Ernie Taylor CENTER ROW: Dick Kattar, Calvin Hughes, Ryan Scholz, Maxie Hardin, Norm Lavigne, Frank Cause FRONT ROW: Joe Tucker, Tom Duff, Tim Draper, Les Sussman, Paul Apostol, Cliff Christenson Focusing on the four key principles, Wellman management learned that: * The entire organization must be geared towards SATISFYING ITS CUSTOMERS, both internal and external, by always meeting or exceeding their requirements . * SENIOR MANAGEMENT LEADS THE WAY in incorporating quality values, which are a vision of the future and describe the company's culture, into the company. * EMPLOYEES ARE INVOLVED in improving quality and reducing costs. The ideas and knowledge of the people closest to the process are a vital part of the improvement. and teamwork is the key to success. * CONTINUOUS IMPROVEMENT is a way of life . The quality improvement process is a proven approach, a method that results in better products and services at lower costs. Consider Japan, who went from economic ruin after World War II to a major economic power by utilizing these basic principles. The OualPro seminar was just the beginning. Senior Staff is currently developing a Quality Policy and a Values Statement. Steering committees and training sessions are being set up for education and guidance . Within a very short time, the entire organization will be involved in this process which will enable us to continue into the future in a leadership role . • 2 f which aired the interview and increased traffic to the booth . Exhibitors at the show displayed a variety of "environmentally correct" products. From non-toxic household cleansers in recycled packages, to handbags made from discarded inner tubes, all of the goods and services at this show were "environmentally friendly." Other interesting products included notebooks made from unwanted computer parts, solar-powered cars, and organic cosmetics. Wellman's booth generated a lot of interest and excitement. Students stopped by to tell us that they recycled; stockholders stopped by to thank us; retailers asked us where they could buy our product; consumers asked us how they could get more involved, and just about everyone said "keep up the good work!" Plans to attend these shows on a regular basis are already underway. Next stop - Eco Expo in California in Ma~hl • Lifesaver Award E ACH YEAR the South Carolina Occupational Safety Council recognizes individual efforts for livesaving efforts. During the summer of 1990, Mr. Tiny E. Matthews saved the lives of two individuals while he was vacationing in the mountains of North Carolina. Tiny rescued a child and his mother from a swimming pool and then assisted with resuscitation on both persons. While Tiny did not win the award for SCOSC Lifesaver of the Year for 1991, he was recognized for his heroic effort at the conference . S.C. Department of Labor Commissioner, Virgil Duffie, presented Tiny with a certificate and honored him at the conference. We congratulate Tiny for this outstanding heroic effort and are proud to have him as a fellow employee . He has worked for Wellman for 16 years and is presently in the Woof Combing Tech Department at Johnsonville. Tiny and his wife Miriam live in Johnsonville and have two sons. Contratulations Tiny, everyone at Wellman is proud of your accomplishment. • 3 Left to Right: Virgil Duffie, Tiny Matthews �Desert Storm Banquet Left to Right: Tom Duff, Michael Brown, Gen, Tuten, James Scott, Capt. Hjort, Gerody Boatwright, Gilbert Brown, Lee Arthur Goss, Tim Murphy, Dave Lambert, George Higgins, Benny Richardson. Wellman, Inc. of Johnsonville recently paid special honor to nine employees who served in Desert Storm at a banquet at The Wellman Club. Dal Avant, Director of Human Resources, extended a welcome to those present and presided over the evening . Morris Perry, Department Superintendent in Fiber Preparation, gave the invocation, after which a buffet dinner was served . Following dinner, Avant recognized special guests who included Tom Duff, President and CEO; Cllff Christenson, Chief Financial Officer; Paul Apostol, Vice President of Manufactured Products Group; Doug Stover, Technical Services Manager, Charlotte Facility; Brigadier General James Tuten, Deputy Adjutant General of South Carolina and Mrs. Tuten; Captain John Hjort, Commander of the I 052nd Transportation Company; wives and special guests of guardsmen and reservists . Frances Owens, Communications and Benefits Manager, introduced Gen . Tuten, who addressed the group . Gen. Tuten extended greetings on behalf of Adjutant General Eston Marchant. of Wellman, businessmen, lawyers, doctors, skilled craftsmen, public employees, laborers .. . patriots who appreciate the American way of life .. . who, out of this love for country, give of their time from their families, their jobs, and pleasures to train for combat. " You have worked with employees who are members of the reserve and National Guard by giving them time to train with their units and attend "This is a very special time for our country," Tuten said . "A little over two months ago we celebrated the independence of our great nation, marking 2 I 5 years since the Declaration was signed into order. It took on added significance this year because we also celebrated the great victory of Desert Storm. Kuwait has been liberated and our soldiers, sailors, marines, airmen and coast guardsmen are back home! We welcome them back as true patriots and heroes .. . Americans at their best." Left to Right: Cliff Christenson, Gen. James Tuten, Tom Duff. schools to qualify in their specialties. You have arranged their work schedules to accommodate their training requirements . He thanked Wellman, who, he said " has long supported the defense efforts of our great country," and went on to say, ''I'm proud to commend, congratulate and thank you, Mr. Duff, for the shining example of employer support you set for the manufacturing industry. You supply products used in the manufacture of clothing and individual equipment for members of the military forces . In this way you contributed to the success of Operation Desert Storm. You encourage and support employees who are members of the National Guard and Reserves, to the extent that you have received national recognition for your efforts. Guardsmen and reservists, as you know, are private citizens; employees 11 " Most importantly, and the reason we are here this evening, is to recognize and honor those guard and reserve employees who were mobilized for Desert Storm and their fam ily members, and to thank you for the outstanding support you provided them . You supplemented their military pay by continuing to pay them half of their regular monthly wages. You paid the entire cost of both medical and life insurance for them and their dependents. This type of support earned Wellman the National ESGR Committee's Seven Seal Award We welcome them back as true patriots and heroes ... Americans at their best." 4 for outstanding support of our nation's defense efforts. " Those honored included Lee Arthur Goss and his guest, Connie Jones, and Bennie Richardson and h is wife, Carolyn, of the 132nd Military Police Company of Florence; GIibert Brown, Michael Brown, James Scott and George Huggins and his w ife, Lyn, of the I 052nd Transportation Company of Kingstree . Also, Gerody Boatwright and his w ife, Elois, of the 315th Military Airlift W ing - A ir Force Reserves, Charleston; Tim Murphy and guest, Valorie Shird, of the U.S. Naval Reserve, Charleston; and Dave Lambert and wife, Kathy, of the 227th Transportation Company, Albermarle, NC. Gen. Tuten assisted Mr. Duff in the presentation of plaques to those honorees. During the presentation Mr. Duff said, "We showed the rest of the world the way we live and when we as Americans set out to do anything, we can do it . Probably the greatest example of this was the success of the war. Welcome home!'' Gen Tuten spoke to each honoree individually as he presented him with his plaque . We showed the rest of the world the way we live and when we as Americans set out to do anything, we can do it. Probably the greatest example of this was the success of the war. Welcome homel'' 11 5 �Wellman Races Across America CONGRATULATIONS TO ALL PARTICIPANTS HE FAYETTEVILLE PLANT participated in an open house on September 14, in conjunction with its neighbors in the Cedar Creek Industrial Complex. The neighbors include Monsanto and ICI. T WO HUNDRED NINETEEN (219) employees started this summer season in better shape after walking, running, skating, biking, swimming and rowing their way across America . Joining in tallying up an outstanding 15,700 miles were employees from Wellman's Palmetto, New York and Charlotte locations. Also participating in this challenge were onsite employees from Fluor Daniel, Sharonview Federal Credit Union, Food Service Inc., Security Forces Inc. and Industrial Housekeeping Services. Coordinators at each location were responsible for turning in official tally sheets and encouraging participation in their groups. Weekly drawings were held for prizes of fresh fruit and T-shirts. Grand prize winners received jogging suits, running/walking shoes, or nutrition books. Fayetteville Plant Open House T NAriOl-iAI EMPLOYEES HUJ.rll&FmifSS DAY MAY1991 The idea of an open house came about during a meeting of the three plant managers in January, 1991 . At that time they committed to improving communications and relations with the families living in the vicinity of the three facilities and with community officials. They further committed to meeting the Chemical Manufacturers Association (CMA) guidelines on "responsible care." These guidelines include exposing the public to our facilities and processes and providing feedback to questions from the public. Plant Manager, Ole Sorensen Patriotic red, white and blue T-shirts recognizing National Employees Health and Fitness Day were awarded to eligible participants in the Fiber's Race Across America Exercise Event. Sponsoring the event were (from left) Martha Ward and Carolyn Lewis, both with the Palmetto Health and Wellness Department. More than 600 employees, employee family members and nearby residents attended the fair. Each facility had a display in the assembly area of its processes and/or products, as well as its emergency equipment and training . In addition, tours were offered of each facility. Newly appointed Plant Manager, Ole Sorensen, greeted the crowd on behalf of the Fayetteville/POV Plant. He informed them of our plant Bonded Fiber West Employees Celebrate Safety Record stantly striving to improve our quality of work life by eliminating hazards, reducing exposures and minimizing the environmental impact of our plant on the surrounding community." Ole encouraged everyone to visit our display booths, take the plant tour and talk to our employees. 0 N SEPTEMBER 22, 1991 , the employees of Bonded Fiber Products West, in Commerce, CA, were treated to a night of Mexican food and mariachi music. The celebration was to thank employees for a great team effort in maintaining a good safety record for the years 1989 and 1990. The biggest "reward" is that employees are not being injured . Good safety records also reduce workers ' compensation and insurance costs, which, in turn, con- motto, "One Team Achieving Excellence." He explained that "This means approximately 200 of us working as a team to produce products that are of the highest quality, to run our processes without interruptions and, most importantly, to operate in a manner that maximizes the safety and well-being of our employees." He went on to say that "we are con- State Senator Lura Tally was also present. She is chairman of a Senate committee on the environment and natural resources and is a member of the state Environmental Review Commission . During an interview she said she is impressed with the safety measures taken by our facilities. "This is the kind of thing I wish every industry would do," Mrs. Tally stated . • tributes to profit sharing. Special guests included the employees· spouses, Allen R. Keith, Safety Director, and Martin Huggins, Environmental Control Manager from Wellman, Inc. The highlight of the evening was a raffle of a 19" color television . This television was presented by Les Sussman, General Manager, and Enrique Barcena, Human Resources Manager, to Miguel A. Soto. L-R: Randy Barbour, Kathy Blackman 6 Guest speakers included Bonnie Gillott, Manager of Responsible Care at the Chemical Manufacturers Association (CMA) in Washington, DC and John Mcinnis, Cumberland Country Emergency Management Coordinator. John indicated that the three facilities helped make the Fayetteville-Cumberland County Hazardous Material Team the best in the state. Fayetteville Fire Chief Pete Piner was present and during an interview pointed out that the companies have helped through donations of equipment and money. L-R: Betty Faircloth, Reba Hollingsworth 7 �CRlnc. Expands Recycling Facility Network TGOIVIERY uNTY YClES l J Wellman Pledge to Mental Retardation Campaign W ELLMAN, INC. GAVE the Florence County Mental Retardation Board Development Campaign a big boost recently when it presented a pledge for $25,000, to be paid over the next five years. The contribution will be used by the Mental Retardation Board to help purchase The Sheltered Workshop Recycling Center in Johnsonville . Richard J. Kattar The Development Campaign is in the final stages of reaching its goal of $525,000. More than S250,000 has been pledged to date, with many pace-setting prospects pending, according to campaign officials. Funds raised in the campaign will be used to expand, increase and upgrade the service facilities operated by the Mental Retardation Board throughout Florence County. • Dal Avant presents check to Barbara Maxwell DuPage County Recycling Facility 0 N SEPTEMBER 21, CRlnc. celebrated the Grand Opening of one of its newest, and the world' s finest, municipal recycling facilities, the Montgomery County, Maryland Recycling Center. Over 10,000 County and .D .C. area residents, public officials and industry represent atives toured the state-ofthe-art processing center during the festivities . The Grand Opening was highlighted by addresses from Maryland Governor William Schaefer, Maryland Environmental Service Director George Perdikakis and CRlnc.'s President, Richard J. Kattar. County, Illinois materials recycling facilities {MRF) . Montgomery County's Recycling Center processes commingled recyclable containers {rigid plastic containers, aluminum, tin cans and glass containers) and also acts as a transfer point for newspaper, compostable yard waste and brush . The Bezner system is designed to process over 100 tons of mixed recyclables per shift, and the facility will handle an additional 140 tons of newspaper and 40 tons of yard waste each day. Preliminary estimates show the facility generating between 4 and 5 million pounds of baled plastics per year after full program implementation . State-of-the-art Design CRlnc. designed, built and now operates the S8 .4 million facility which is located just outside of Washington, D.C. The plant is equipped with Bezner sorting machinery, also used in CRlnc.'s Johnston, Rhode Island, Brookhaven, New York and DuPage The Recycl ing Center features an elaborate building design with full educational amenities, including an elevated " catwalk" which provides a bird's-eye view of all processing components and operations. Plant Manager Rick Kattar is responsible for all aspects of facility operation with the exception of materials marketing, which is handled by the Materials Marketing Department at CRlnc.'s headquarters in Massachusetts . Rick coorqinated the installation of the processing equipment, and currently oversees a facility staff of 23 . Additional Expansion Efforts CRlnc.'s advanced 320 ton per day DuPage County, Illinois MRF was also recently completed; operations are underway and the opening was held on October 26. In addition, CRlnc. has completed its Atlantic County, New Jersy MRF and will begin operating the Bridgeport, New Jersey National Polystyrene Recycling Company facility in the next few weeks. Recycling operations in Tucson, Arizona commenced in July, and CRlnc.'s Dutchess County, New York MRF is well into its Bezner system installation phase. • Fibers Division Raises Consciousness and Money I 11 to create life affirming environments for children living with HIV and AIDS." N THE FACE of a growing AIDS epidemic, at a time when health care facilities are strain ing to provide even the basic services, " gardens of hope" can bring som e much needed sunshine to the lives of those who need and deserve it most. One organization that' s working toward this goal is the Tamarand Foundation, whose purpose is "to create life affirming en- . vironments for children living w ith HIV and AIDS ." In an effort to help, the Fibers Division co-sponsored a breakfast and marketing semin ar with CHILD Magazine for the Childrenswear Manufacturers Association . The event, entitled " Ch ildren in the 90's," was attended by 250 childrenswear professionals who heard a dist inguished panel of experts discuss th e importance of cause-relat ed marketing, and the increasin g significance t he environment will have on consumers. (Th is is very good news for all of us at W ellman!!) Not only did everyone learn a lot about marketing, but $3,000 was raised for the Ta marand Foundation, wh ich brings roof gardens, child ren's play gardens, and music and art progra ms to AIDS care facilities. Congrat ulations Fibers on raising f unds and consciousnessll • Congratulations Fibers on raising funds and consciousness!! 8 9 �Wellman Inc. Scholarship Program W ELLMAN MADE AN ANNOUNCEMENT to all full-time employees early February that a scholarship program was being established for children of all employees in the United States. The program, for high school seniors, is administered by an independent, nonprofit organization, called The Foundation Scholarship Program. A one-time opportunity for undergraduate students (freshmen, sophomores and juniors) was provided for the 1991-92 school year. Beginning with the 1992-93 school year, only high school seniors and prior year scholarship recipients will be eligible to apply for scholarships. Wellman will provide S40,000 in total scholarships during the 1991-92 school year and each year thereafter. Renewal of a scholarship for the second, third and fourth years is contingent upon satisfactory progress toward graduation . Criteria used for making selections are: SAT/ACT scores; GPA; class rank; letter of recommendation from high school; potential for success in college, and financial need. We wish the students success in their academic pursuit. Recipients for the 1991 -92 school year are: RECIPIENT QUALIFYING EMPLOYEE HIGH SCHOOL SENIOR CATEGORY Kevin Honeycutt James Honeycutt Anthony Parker Jerome Parker Patrick Stone Wayne Stone Stephanie Humphries Jeffrey Humphries Adesha Ross Mickey Ross Yvonne Bailey James Bailey Trina Jones Richard Jones Misty Parker Herman Parker Jennifer Tanner John E. Tanner Tamara Goodson Carl Goodson COLLEGE FRESHMAN CATEGORY Nichelle Swanson Al Swanson Sandy Barnes Sarah Barnes William Hanna Judy Hanna Cammie Powell Carey Powell Tammi Jelovchan Vence Jelovchan Jenny Underwood Carl Underwood Tonya Bazen Linda Bazen Susan Robinson Sheila Hayes Andy Barnes Sarah Barnes Brian Sims Earl Sims COLLEGE SOPHOMORE CATEGORY Greg Powell Kathy Powell Jennifer Hannah Harry Hannah Jimmy Williams Cheryl Williams Tammy Brookens Renette and Art Brookens Kelvin Baggett Wendell Baggett Michele Thow Larry Thew COLLEGE JUNIOR CATEGORY Lisa Powell Kathy Powell Neil Radford Peggy Deese Nathan Carroll Timothy Carroll Jessica Ard Johnny Ard 10 PLANT LOCATION DIVISION Palmetto Johnsonville Johnsonville Johnsonville Fayetteville Palmetto Palmetto Johnsonville Johnsonville Palmetto Fibers Fibers Fibers Fibers Fibers Fibers Fibers MRD Corporate Fibers Johnsonville Palmetto Johnsonville Johnsonville Palmetto Fayetteville Johnsonville Palmetto Palmetto Palmetto Corporate Fibers Corporate Fibers Fibers Fibers Corporate Fibers Fibers Fibers Johnsonville Palmetto Johnsonville Corporate Fibers Corporate Johnsonville Fayetteville Palmetto Corporate Fibers Fibers Johnsonville Charlotte Palmetto Johnsonville Corporate BFP Fibers Plastics CRlnc. Goes International Packaging institutes from all over Europe are turning to America for examples of successful recycling programs. A LTHOUGH MANY overseas cities and towns began recycling some years ago, surprisingly few have comprehensive recycling programs designed to substantially reduce the amount of municipal solid waste that must be landfilled or incinerated, CRlnc. is now expanding its market to include Europe, Australia, the Pacific Rim and the Middle East. CRlnc.'s first overseas project is an award by the Borough of Milton Keynes, England, to design and install a large-scale processing center for recyclable materials. The facility will process plastics, paper, glass, metals and textiles. Milton Keynes is located approximately 60 miles north of London and has a population base of 400,000. CRlnc. is working closely with the European Recovery and Recycling Association (ERRA) to promote the concepts of curbside collection and Materials Recycling Facilities throughout Europe. We have developed joint marketing efforts with our German partner, Bezner, to capitalize on this surge in business opportunities. CRlnc.'s president and Vice President of Business Development have spoken before several municipal recycling groups in Europe and are currently pursuing discussions with Birmingham, Leeds and Nottingham in England. The current recycling wave in Europe is largely propelled by powerful packaging groups responding to government pressure. They seek to ensure that their packaging is both technologically and logistically recyclable. The packaging groups typically provide startup II capital for facilities in large metropolitan areas. Packaging institutes from all over Europe are turning to America for examples of successful recycling programs. In late October, CRlnc. and partner, Laidlaw Waste Systems, Inc., were selected by a packaging institute in Belgium to design, develop and operate a large-scale recycling facility. The 280 ton per day recycling facility will be the first CRlnc. facility on the European continent. CRlnc. representatives have been working closely with Wellman's well-established European branch, Wellman International Ltd. Wellman International has offices in Ireland, England, The Netherlands and Germany. Both CRlnc. and Wellman anticipate substantial activity in the European sector during the next few months. Other International Efforts CRlnc. is working with Public Works officials in Bermuda to design and install a small-scale processing center. CRlnc. has been providing marketing services to the island community of 75,000 for the past several months. CRlnc. is investigating expansion possibilities in Australia as well; we are currently working with a Melbourne-based consultant to evaluate the Australian market. Other international sales efforts and inquiries include Mexico, Costa Rica, Israel and Korea . �- - - The Palmetto Plant----Buckles Upl Wellman Adopts Shareholder Rights Plan 0 N AUGUST 6, I 99 I, the Board of Directors of Wellman, Inc. declared a dividend distribution of one Common Stock Purchase Right for each outstanding share of Wellman Common Stock. The Rights were distributed on September I 6, I 99 I to shareholders of record as of August 30, I 99 I . Certificates evidencing the Rights were not sent to the shareholders as the Rights trade automatically with the Common Stock. For example, anyone who owned I 00 shares of Wellman Common Stock as of the close of business on August 30, I 99 I or who buys I 00 shares in the future, automatically owns I 00 Purchase Rights. Each Right entitles the holder to purchase one share of Wellman Common Stock for S90. Belts and Bags A Winning Combination What Is a Rights Plan? South Carolina Governor's Office of Highway Safety Carroll A. Campbell, Jr. Governor A ty belts, James said. The third survey, done September I 9-20, showed 80.4%. To qualify for the award from the South Carolina Governor's Office of Highway Safety, two consecutive surveys of 70% or more are required . LITTLE PREVENTION can go a long way - in the automobile and the canteen. Palmetto Plant employees recently passed two surprise inspections as part of qualifying for the 70% Plus Honor Roll, a national program designed to enhance safety belt awareness. Employees wearing their safety belts were given Buckle Up American dollars, for SI .00 worth of items in the company canteen. "It worked out real well; we were pleased to see that," said Richard James, an environmental engineer who helped coord inate the program. "We felt this campaign would help our people in case they were involved in an accident. We're a safety-conscious plant, so it was just a natural extension of what we already have in place here," James said. On three occasions, volunteer employees checked out other workers as they drove into the parking lots James said. The initial survey showed that slightly fewer than 69% of employees wore their safety belts, a good figure, but not enough . A vigorous awareness campaign was put underway with bulletin board postings, videos, and notices of safety belt benefits accompanying payroll checks. Survey volunteers and program coordinators included James, Lydia King, Anne Bradley, Nick Jacobs, John Kimbrough, Wayne Clary and Fluor Daniels employees Jean Rowe and Walter MIiier. • The second survey showed 80.2% wearing safe- 12 Shareholder Rights Plans, commonly called "poison pills," contain provisions designed to ensure that a company's shareholders receive fair and equal treatment in the event of an attempted takeover of the company. These provisions guard against abusive and coercive takeover tactics that the Board of Directors believes are not in the best interests of the shareholders of the company. Wellman's Shareholder Rights Plan was not adopted in response to any effort to acquire Wellman, nor is the company aware of any such effort. The Rights Plan is also not intended to prevent a takeover of Wellman and will not do so. However, it should deter any attempt to acquire control of Wellman in a manner or on terms that the Board of Directors determines are not in the best interests of all shareholders. How Does the Rights Plan Work? The Rights Plan provides that the time a person or group becomes an acquiring person or group, meaning they have acquired I 5% or more of outstanding shares of Wellman Common Stock, the Rights will separate from the Common Stock and separate certificates representing the Rights will be sent to shareholders. Shareholder Rights Plans, commonly called "poison pills,,, contain provisions designed to ensure that a company's shareholders receive fair and equal treatment in the event of an attempted takeover of the company. Although the Rights are not valuable now, if a person acquires I 5% of Wellman Common Stock, the Rights will become valuable to all shareholders, other than the acquiring shareholder(s). Non-acqu.iring shareholders will have the right to receive, upon exercise of their Rights, Common Stock having a market value equal to two times the exercise price of their Rights. Wellman's Rights have an exercise price of S90 per Right, therefore, every Right not owned by an acquiring person would entitle its holder to purchase SI 80 worth of Wellman Common ,i Stock for S90. For example, let's assume that the Common Stock had a per share value of S30 at such a time and a nonacquiring shareholder owns I 00 shares of stock and, therefore, I 00 Purchase Rights . This shareholder would be entitled to purchase six shares of Common Stock for every Right exercised, to a maximum of I 00 Rights. This number is derived by dividing the S90 exercise price by the S30 share price and multiplying by 2. If this shareholder exercised 25 of his rights, he could purchase I 50 (2 5 rights x 6 shares per right) shares of stock for S2,250 (25 rights x S90) instead of the S4,500 market price ( I 50 shares x S30) . Issuance of the Rights does not in any way weaken the financial strength of Wellman, nor interfere with its business plans. The issuance of the Rights has no dilutive effect, will not affect reported earnings, is not taxable to the holder or Wellman and will not change the way Wellman Common Stock is currently traded . The Rights expire on August 5, 2001, unless earlier redeemed by the company. More than I .500 companies have adopted Rights Plans over the last several years. Wellman considers these Rights to be an important means of protecting shareholders' ability to retain their equity investment in Wellman and to realize the full value of that investment. The adoption of the Rights Plan expresses the Board of Directors' confidence in Wellman's future and determ ination that all shareholders, including employees, be given every opportunity to participate fully in that future. • (This summary description of the Rights Plan is not complete. If you have any questions about the plan or would like to receive a copy of it, please contact JIii M. Rea, Wellman's Investor Relations Manager, at the Shrewsbury office .) 13 �Every Little Bit Counts Toward Profit Sharing T If you suggest a better way to do your job or eliminate costs or reduce the time necessary, it increases operating income. HIS IS THE SECOND YEAR of the Wellman Profit Sharing Plan . The sharing started in 1990, and the plan was revised for 1991 to make it more understandable and to make the payout goals more attainable. For the first quarter of this year, every eligible domestic employee of Wellman received one percent of their quarterly income, and in the second and third quarters, the reward was two percent each time. Profit sharing is a relatively new concept and very few employers share the rewards of good performance with all employees. Wellman has taken a leadership role and wants to continue to offer an incentive for outstanding results . Our plan shares an equal percentage to all employees, based on the amount of operating income that is generated in a specific quarter. The question frequently asked is, " How can I contribute to profit sharing?" The answer is that everyone can contribute, no matter what their job is. For example, what if you go to a discount pharmacy to fill your medical prescription rather than the most convenient one? Payment of claims from our medical plans is funded directly by the company, and SI O saved on your prescription is SI O more in operating income. Your contribution might be a big idea, such as the one Dave Hudson had to purchase in bulk an additive to the fiber process in Palmetto (see story on next page "SI 00,000 + Idea" ). If you suggest a better way to do your job or eliminate costs or reduce the time 14 Quarter Earnings same quarter last year. The company purchased CRlnc. late in last year's third quarter, therefore, there is no sales comparison for CRlnc. The continuation of poor market conditions in Europe, exacerbated by the seasonally slow summer vacation period and a brief work stoppage at the Irish plant, resulted in lower production levels at Wellman's European fibers operations during the third quarter. The resultant significantly reduced volumes, as well as further selling price declines, caused the European operations to report a loss for the third quarter of 1991. In addition, during the quarter, Wellman incurred approximately S1.5 million of one-time restructuring and similar charges at various business units, including costs related to a reduction in personnel at the company's Irish plant resulting from process efficiencies. Such one-time costs should result in efficiencies in future periods. • necessary, it increases operating income. A portion of these savings comes back to us in the form of profit sharing. Of course, a lot of things that we might not have direct control over have a large impact on operating income, like the price of raw materials or the selling price of our products. But then again, our individual efforts to make the best quality product help to support a higher selling price. If we all just do the very best we can, the results will be there and, more importantly, with the Wellman Profit Sharing Plan, now they will be shared with every employee. We are fortunate to work for a company that has profit sharing. Very few of our neighbors can claim that they share in the profits of their employers. If each of us can contribute a little bit, then all of us will benefit. • i S100,000+ IDEAII D A portion of these savings comes back to us in the form of profit sharing. AVE HUDSON used a little supermarket strategy to save a lot of money. Hudson, a buyer at the Palmetto Plant, came up with the idea of purchasing Additive Code I I IO in bulk instead of in the 510 pound drums as before . The proposal has been named "idea of the Month" for June, 199 I, at the Palmetto Plant. " The new method will save at least SI 00,000 per year," said Hudson, a I 0-year employee. Many hours will also be saved since drum handling and pallet disposal has been eliminated. "It will save a lot of people a lot of work . Now all they have to do is turn on the spigot," Hudson said. The idea for the 12,000 gallon 15 storage tank came during a recent meeting in which Hudson and his coworkers tried to work out a better way to handle the drum and chemical situation . Previously, the price of the product included the drums and pallets, so Hudson saw an opportunity to cut costs. " I could buy the material for quite a bit less .. . it just sort of took off from there," Hudson said. The bulk storage idea may be used for other chemicals, but Hudson and coworkers are not sure yet. In the meantime, more Additive Code I I IO on the premises means more savings. "The payback on this is short term . From then on, it's all gravy," said Hudson . • �Published quarterly for employees of Wellman, Inc. and their famllles. EDITOR: JIii Harnlck N ew York CORRESPONDENTS: Dal Avant Enrique Barcena Willie Bethea Adrienne Green Steve Lefevre Barbara Miles Linda Moreau Steve Nichols Frances Owens Jill Rea Ryan Scholz Scott Spring Ernie Taylor Johnsonville Bonded Fibers West Fayetteville Palmetto Palmetto Palmetto Charlotte Charlotte Johnsonville r I I I Shrewsbury Johnsonville CRlnc. Charlotte PRODUCTION: Cathy Chia relli Sheila Friedberg New York New York @ Printed on recycled paper. Bulk Rate U.S. Postage PAID Johnsonville, SC Permit No. 9 WELLMAN, INC. Johnsonville, SC 29555 Cheryl H Williams Route 3, Box 316 Hemingway SC Z9554 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Wellman Topics Subject The topic of the resource Wellman Inc, Wellman Combing Company Description An account of the resource Over the years, Wellman Inc. created an employee magazine detailing goings on in Johnsonville and with the company. Various surviving copies of this magazine are digitized in this collection. Creator An entity primarily responsible for making the resource Wellman, Inc. Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Wellman Topics December 1991 Date A point or period of time associated with an event in the lifecycle of the resource 1991