01.01.03
Location: Quebec, Canada
Sales: $82 million
Description: Key Personnel
Raoul Heredia, president
Plants
Gatineau, Quebec; Thurso, Quebec; Charleston, SC; Germany
Processes
Airlaid
Major Markets
Wipes, feminine hygiene, diapers
It’s been a tough year for airlaid specialist Concert Industries, Quebec, Canada. The company has grappled with overcapacity in its core markets, credit problems and an unsuccessful patent battle related to festooning technology with one of its chief competitors.
In August, the company addressed these problems by filing for protection under its creditors arrangement act and announcing in increase in its operating line of credit. The filing affected Concert’s manufacturing sites in Quebec and South Carolina; the company’s German facility was not affected.
In announcing these measures, Concert officials attributed several factors to its recent troubles. For one, a significant amount of airlaid capacity came onstream in 2001, making it difficult for Concert to get fair prices for its materials. Concert was a key contributor to this overcapacity situation in 2001. That year, the company installed two side-by-side lines in Gatineau, Quebec, with a combined capacity of 38,000 metric tons. Also affecting Concert’s bottom line was a worldwide economic slowdown, oversupply, continued losses at its Charleston plant and an unexpected change in the product mix of one of its major customers.
To remedy the situation, Concert is seeking potential buyers of the Charleston, SC site it purchased with ACI in 2000. If a buyer cannot be found, it will be closed and its equipment will be transferred to other facilities. Also, the company headquarters will be relocated from Vancouver, B.C., to Gatineau, Quebec and a special committee of the board of directors will examine these issues.
Another measure taken by Concert this year was the appointment of turnaround specialist Raoul Heredia as president. Mr. Heredia served as CFO of Peerless Carpet Corporation. During his tenure with Peerless, he undertook a reorganization of the company that eventually led to its sale. Former president and founder Dieter Peter continues to serve Concert as company chairman.
Sales: $82 million
Description: Key Personnel
Raoul Heredia, president
Plants
Gatineau, Quebec; Thurso, Quebec; Charleston, SC; Germany
Processes
Airlaid
Major Markets
Wipes, feminine hygiene, diapers
It’s been a tough year for airlaid specialist Concert Industries, Quebec, Canada. The company has grappled with overcapacity in its core markets, credit problems and an unsuccessful patent battle related to festooning technology with one of its chief competitors.
In August, the company addressed these problems by filing for protection under its creditors arrangement act and announcing in increase in its operating line of credit. The filing affected Concert’s manufacturing sites in Quebec and South Carolina; the company’s German facility was not affected.
In announcing these measures, Concert officials attributed several factors to its recent troubles. For one, a significant amount of airlaid capacity came onstream in 2001, making it difficult for Concert to get fair prices for its materials. Concert was a key contributor to this overcapacity situation in 2001. That year, the company installed two side-by-side lines in Gatineau, Quebec, with a combined capacity of 38,000 metric tons. Also affecting Concert’s bottom line was a worldwide economic slowdown, oversupply, continued losses at its Charleston plant and an unexpected change in the product mix of one of its major customers.
To remedy the situation, Concert is seeking potential buyers of the Charleston, SC site it purchased with ACI in 2000. If a buyer cannot be found, it will be closed and its equipment will be transferred to other facilities. Also, the company headquarters will be relocated from Vancouver, B.C., to Gatineau, Quebec and a special committee of the board of directors will examine these issues.
Another measure taken by Concert this year was the appointment of turnaround specialist Raoul Heredia as president. Mr. Heredia served as CFO of Peerless Carpet Corporation. During his tenure with Peerless, he undertook a reorganization of the company that eventually led to its sale. Former president and founder Dieter Peter continues to serve Concert as company chairman.