Steven E. Baune, president of CPAC Imaging Worldwide, said, “This additional investment in Tura strengthens our 15-month partnership and supports our strategy of being a total service provider to Imaging customers, on par with global competitors. Tura’s film and paper products complement CPAC chemicals, and its reusable and single-use cameras, Tura branded batteries, and digital products present new opportunities for our customers.” In recent years, CPAC has been gaining recognition in global markets as “an innovative and responsive single-source supplier of silver halide products and services, on par with its major competitors”.
In a separate announcement CPAC disclosed it will close its Imaging chemical production plant in St. Louis, Missouri, which manufactures processing chemicals for photographic film and paper, and combine both operations into its Norcross, Georgia facility. The move is part of a cost-cutting program CPAC announced in February of this year.
The company said, “Continued improvements in manufacturing efficiency, including a shift toward highly concentrated chemical formulations, have resulted in both plants operating with excess capacity.” CPAC chose to consolidate these operations at its Norcross plant because of its size, its potential for future growth, and the comparative costs of relocating and retooling.
Company president Baune added, “This decision also reflects the ongoing weakness in the U.S. economy, and to a lesser extent a domestic market shift from traditional silver halide technologies in the Healthcare Imaging and Color Photographic industries… Closing a plant is an extremely difficult decision (and) is in no way a reflection on the performance of our employees. We are extremely proud of the quality and dedication of this team of people. Now our goal must be to do all we can to assist them through this transition.”
The St. Louis plant, which employs 26 people, will close by September. Some employees will be able to relocate to Norcross, while others will receive a severance package and outplacement support. The estimated financial impacts of the move will be reflected in CPAC’s Fiscal 2004 results.