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Mark Peters : August 26th 2005 - 02:45 CET

Kodak manufacturing reductions in USA and China


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KodakKodak manufacturing reductions in USA and China : Eastman Kodak Company announced actions to consolidate its manufacturing operations as part of its ongoing program to rapidly adjust to the accelerating decline in demand for film and photographic paper. Pursuant to a restructuring program and consistent with marketplace demand, current actions include: Consolidate color photographic paper manufacturing for USA at plants in Windsor and Harrow, England, resulting in the closure of an operation in Rochester by the end of October. Close by year-end an operation in Rochester that recycles polyester waste and part of an operation that processes polyester raw material in the manufacturing of Estar polyester film base.
Kodak manufacturing reductions in USA and ChinaReduce manufacturing capacity
Kodak will purchase finished raw material and will contract to have polyester waste recycled by firms with resource recovery expertise. Reduce manufacturing capacity for consumer film products at its plant in Xiamen, China. None of these actions will impact Kodak's ability to continue serving worldwide customers with traditional film and paper products. Together, these actions will result in a reduction in employment of about 900 positions, more than half in Rochester. Charges totaling about $153 million, primarily related to asset write-offs and separation benefits, will be taken related to the actions.

Kodak - Accelerated declines in consumer film and paper
"These actions are regrettable because they impact our Kodak people whose performance has been outstanding, but they are necessary in light of the accelerated declines in consumer film and paper," said Daniel T. Meek, director of Global Manufacturing & Logistics. "We will continue to move aggressively to competitively position our operations and adjust our manufacturing footprint and capacity for the marketplace realities." Meek noted that Kodak is committed to strengthening its leadership position in the three segments of the imaging market: consumer, health and graphic communications, both traditional and digital.

About Eastman Kodak Company
Kodak is the leader in helping people take, share, print and view images - for memories, for information, for entertainment. With sales of $13.5 billion in 2004, the company is committed to a digitally oriented growth strategy focused on the following businesses: Health - supplying the medical and dental industries with traditional and digital imaging-information products and services, as well healthcare IT solutions and services; Graphic Communications - offering on-demand color and black and white printing, wide-format inkjet printing, high-speed, high-volume continuous inkjet printing, as well as document scanning, archiving and multi-vendor IT services; Digital & Film Imaging Systems - providing consumers, professionals and cinematographers with digital and traditional products and services; and Display & Components - which designs and manufactures state-of-the-art organic light-emitting diode displays as well as other specialty materials, and delivers imaging sensors to original equipment manufacturers.





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