Paper maker Schweitzer-Mauduit International Inc. said Tuesday it will take restructuring charges of about $3.3 million to close its Brazilian coated papers business.
The business "has experienced increased inflationary cost pressures that we have not been able to offset with selling price increases," Chief Executive Wayne H. Deitrich said in a statement.
"Due to the devaluation of the U.S. dollar against the Brazilian real, lower cost imported coated papers have gained an approximate 43 percent share of the local market."
As a result, about 100 people, or 16 percent of the company's Brazilian workforce, will be laid off.
Charges of about $1.8 million in fixed asset impairment and about $1.5 million for cash employee severance and other payments will be booked in the second and third quarters of 2008.
Schweitzer-Mauduit's Brazilian operations will focus on the company's core tobacco-related fine papers business, the company said.
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