Wellman to close plants in Johnsonville, Darlington

Wellman Inc. is planning to shut down its operations in Johnsonville and Darlington soon, possibly in November, company officials confirmed Tuesday.

The company employs 550 people at its Palmetto Plant off McIver Road in Darlington County, in addition to 170 people at its Johnsonville plant.

Wellman manufactures and markets high-quality polyester products, including PermaClear brand PET (polyethylene terephthalate) packaging resins and Fortrel brand polyester fibers.

No one at the company could be reached for further comment on the closing Tuesday afternoon.

Wellman announced Feb. 22 that it and certain of its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code for the Southern District of New York, according to a company press release.

Filing under Chapter 11 of the U.S. Bankruptcy Code frees a company from the threat of creditors’ lawsuits while it reorganizes its finances. The debtor’s reorganization plan must be accepted by a majority of its creditors. Unless the court rules otherwise, the debtor remains in control of the business and its assets.

In September 2006, Wellman announced it would end its fiber operations in Johnsonville, putting 360 people out of work. The move came as the company restructures its U.S. fiber operations to improve its operating results, according to a press release issued by the company.

The company consolidated all its U.S. fiber production in its Palmetto plant in Darlington, and closed the fiber production capacity at its Johnsonville plant.

The Johnsonville plant was built in 1954. The son of the original owner, Jack Wellman, lived in the area and was active in community affairs for many years.

In June 2007, Wellman Inc. sold the manufacturing line of Wellstrand fiber and the rights to the trademark to David C. Poole Co. of Greenville. David C. Poole Co. Inc. is a distributor and manufacturer of synthetic fibers for textile and industrial end uses and a distributor of PET resin for packaging applications.

David C. Poole Co. Inc. purchased the core equipment for its new facility from Wellman Inc., and uses 390,000 square feet of distribution and manufacturing facilities in Johnsonville.

The already economically-challenged city of Johnsonville will have a hard road ahead in the wake of Wellman’s closing, city administrator Scott Tanner said.

“It’s not good obviously, but we’re going to have to just get on ...” he said. “We have contingencies in force and we’re going to have to implement them soon.”

Unemployment rates in all Pee Dee counties rose in July as the region’s rate increased to 9.3 percent and the state’s rate jumped to a three-year high of 7 percent, according to data from the S.C. Employment Security Commission released Friday. The Pee Dee’s overall June rate was 8.4 percent.

Florence County, at 7.5 percent, had the region’s lowest unemployment rate for July. Darlington County was at 8.5 percent for that month.

The state’s rate, up from 6.1 percent in June, is the highest since October 2005, according to the commission.

While South Carolina added 1,800 private-sector jobs and 4,900 seasonal jobs, those gains were offset by layoffs — 2,400 in manufacturing and 1,500 in retail, according to the commission.

The commission also announced Aug. 15 that, as of July 12, it has processed more than 32,000 claims for benefits through the federally funded Extended Unemployment Compensation Program. The program, enacted by Congress, offers assistance to people “who have exhausted benefits under the regular Unemployment Insurance” program, according to the commission.

The Pee Dee’s work force dropped by 843 people in June to 169,161 in July. The number of unemployed workers, meanwhile, rose by 1,476 since June.

The national unemployment rate also increased from 5.5 percent in June to 5.7 percent in July.

A year ago, the Pee Dee’s unemployment rate was 8.2 percent. The state’s rate was 5.8 percent at that time.

The South Carolina Employment Security Commission