Schweitzer-Mauduit International, Inc., has announced a three-part restructuring plan to reduce tobacco-related paper capacity in both France and the United States as well as reduce employment levels in Brazil.

One paper mill in Lee, Massachusetts, will be shut down beginning in May 2008, and a base tipping paper machine at the company's mill in Malaucene, France, will be closed by the end of 2008. In total, four paper machines will be shut down and employment levels at the company's paper mill in Santanesia, Brazil, will be reduced.
The restructuring actions follow the company's evaluation to address the impact on its operations from declining demand for traditional tobacco-related paper products in western Europe and North America as well as from the significant strengthening of the Brazilian real to the US dollar in recent years, which has negatively impacted the company's Brazilian unit's profitability and cost competitiveness.
As a result of these actions, Schweitzer-Mauduit's worldwide employment levels will be reduced by approximately 300 people, or 8 per cent, including 170 employees in the United States, an expected 70 employees in France and 60 employees in Brazil.
The annual pre-tax benefits of these three restructuring activities – expected to be completed during 2008 -are estimated to be in the range of USD 9-11 million. Schweitzer-Mauduit projects pre-tax restructuring expenses in the range of USD 27-30 million as a result of these actions, of which USD 19 million are expected to be recorded during the third quarter of 2007.