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Martin Color-Fi CEO Explains Layoffs By Eric Williamson, The Augusta Chronicle, Ga.
Mar. 5 — Martin Color-Fi's layoff of 33 workers last month was necessary to help the company stay competitive, the company's president and chief executive officer said.
Chief Executive Stephen A. Zagorski said the company could rehire the employees at the Trenton, S.C., commodity fiber plant if the current weak market conditions change or if the facility can be converted to produce a higher-margin product.
Commodity polyester fibers are used as filler material in many consumer products. They are becoming increasingly expensive to produce because of an increase in raw material costs.
Martin Color-Fi's plant in Sumter, S.C., also produces commodity fibers, but Mr. Zagorski said such fibers don't play a significant role in the company's future plans.
“We can't compete against the larger manufacturers,” he explained.
The company now employs 454 people in Georgia and South Carolina. Mr. Zagorski said he doesn't foresee any further layoffs, but he emphasized the company “will react to market conditions.”
He said failure to react to industry changes is what forced Martin Color-Fi's Chapter 11 bankruptcy protection filing in 1998.
Since re-emerging from bankruptcy under ownership of Philadelphia-based investment firm Dimeling, Schreiber & Park, the Edgefield-based Martin Color-Fi's strategy has hinged on its specialized fibers.
In January, Martin Color-Fi announced it had acquired exclusive rights to market its fibers with an additive, designed by Clariant Corp. of Switzerland. The additive keeps fabric colors from fading in sunlight. The foremost application will be in Martin Color-Fi's sales to companies that make automotive headliners, seat covers and carpets.
Mr. Zagorkski said he also expects new innovations to come out of the company's custom-color division in Dalton, Ga.
This year the company formed MCF International, its European marketing arm based in Belgium. Expansion plans will be based on international sales growth.
“We expect to reap rewards this year,” Mr. Zagorski said.
COMPANY HISTORY:
- 1978: James Martin starts fiber brokerage called Martin Fibers.
- 1984: Company moves into fiber manufacturing. Mr. Martin buys his first plant in Sumter, S.C.
- 1985: Company acquires second plant in Trenton, S.C.
- 1992: Martin Color-Fi buys Star Fibers, Mr. Martin's former employer, and opens third plant in Edgefield, S.C.
- 1993: Company has its first public offering. Stock sells for $11 a share.
- 1994: Company buys its fourth South Carolina plant in Laurens; buys Buchanan Industries, a carpet fibers division with plants in Dalton, Ga.
- 1996: Martin Color-Fi has its best year, with sales of $120 million.
- 1998: Company files for Chapter 11 bankruptcy protection, announces reorganization. Stock falls below $1 and is dropped from NASDAQ listings.
- 2000: Company agrees to be acquired by Philadelphia-based investment firm Dimeling, Schreiber & Park. CEO James Martin is ousted. Company emerges from Chapter 11.
- 2001: Martin Color-Fi concentrates on specialty fibers and acquires exclusive rights to fade-resistant color additive expected to increase the company's sizable presence in the automotive fabrics market.