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Johnston Industries Plant Consolidation Plan

Johnston Industries Plant Consolidation Plan Company management at Johnston Industries, Columbus, Ga., completed a review of the companys capacity in light of current market conditions and has decided to consolidate the Columbus Mill plant into other operations. Management decided it was necessary to reduce the number of operating plants to better align the company to service customers in a profitable manner and to stabilize the working schedules for operations personnel.Increasing competitive pressure has compelled Johnston to remove equipment that is not cost-effective and focus resources on equipment more suited to its product offering. The age and layout of the Columbus Mill facility was a key consideration in the consolidation plans, as its multi-story configuration creates inefficiencies not found in Johnstons other facilities.The business currently serviced by Columbus Mill will be phased out and merged into the Southern Phenix Textiles and the Opp and Micolas Mills. Many Columbus employees will be relocating to the Southern Phenix facility. February 2001