FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of September, 2002
Intertape Polymer Group Inc.
110E Montee de Liesse, St. Laurent, Quebec, Canada, H4T 1N4
[Indicate by check mark whether the registrant files or
will file annual reports under cover of Form 20-F or Form 40-F.]
Form 20-F Form 40-F X
[Indicate by check mark whether the registrant by
furnishing the information contained in this Form is also
thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]
Yes No X
[If "Yes" is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b): 82-______]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
INTERTAPE POLYMER GROUP INC.
Date: September 30, 2002
By:/s/ Andrew M. Archibald
Andrew M. Archibald, CFO, Vice
President Administration,
Secretary & Treasurer
September 30, 2002
NYSE SYMBOL: ITP
TSX SYMBOL: ITP
INTERTAPE POLYMER GROUP CONTINUES STRATEGIC DRIVE TO REDUCE
OPERATING COSTS AND ENHANCE COMPETITIVENESS
- Elimination of two manufacturing facilities.
- Additional headcount reduction and efficiency measures.
- Estimated pre-tax cost savings of approximately $17.0 million annually.
- Flat near-term revenue outlook.
Montreal, Quebec, Canada - September 30, 2002 - Intertape
Polymer Group Inc. (NYSE, TSX: ITP) today announced it is
implementing a number of strategic operating and efficiency
measures that will further reduce operating costs.
Significant Cost Reductions to Benefit Flexible Intermediate Bulk Container
("FIBC") Division
As part of its ongoing program to reduce costs, Intertape
Polymer Group ("IPG") is closing the remaining manufacturing and related
service operations in Rayne, Louisiana as well as the Edmundston,
New Brunswick, Canada manufacturing plant. All operations will be consolidated
at IPG's modern factory in Piedras Negras, Mexico. IPG's Mexican facility has
sufficient capacity to integrate these functions and operate on a lower
cost basis. These changes are expected to be fully implemented by late
November, 2002.
Cullen Jones, Director of Sales & Marketing for IPG's FIBC
operation stated that the move should improve the Company's
competitive position. "We currently command an important
share of the market. This initiative to lower costs enhances our ability
to solidify and grow that position."
The consolidation program provides both strategic and financial
benefits. Coupled with existing manufacturing agreements in India and
China, IPG believes it will now be able to supply some of the most technical
and high quality FIBC's throughout the world at competitive prices. The
program should strengthen IPG's position as a low cost producer and will
further enhance its status as one of the leading players in the sector. Based
on current volumes, the consolidation is expected to result in cost
reductions of approximately $3.0 million pretax annually.
IPG is the largest fully integrated FIBC manufacturer in
North America. The Company is a leader in developing and
manufacturing specialized polyolefin plastic and industrial
woven packaging products, including FIBC's, which provide an
innovative solution to dry bulk shipping requirements.
Additional Company Wide Operating Efficiency Measures
The Company also indicated that it would be reducing headcount
levels in its selling, general and administrative areas ("SG&A"). These
reductions are expected to decrease SG&A expenses by approximately
$2.5 million pretax annually.
Management has identified further cost savings opportunities
which it currently plans to implement over the next twelve months.
When completed, these changes are estimated to reduce operating
expenses by up to $12.0 million pretax annually.
In connection with the FIBC consolidation and headcount cost
reductions announced today, the Company will be recording a one-time
pretax charge of approximately $2.5 million in its third quarter earnings
results. This charge relates to severance costs as well as the
write-down of certain manufacturing assets. No additional charges
or provisions are currently foreseen for the additional $12.0 million of
estimated annual cost savings.
Third Quarter Update
As a result of the continued weakness in the global economy,
the Company now expects that third quarter revenues should be
approximately the same as the second quarter. IPG plans to release
third quarter financial results on October 21, 2002.
Conference Call
A conference call to discuss the Company's cost cutting
initiatives will be held today at 11:30 Eastern Time.
Participants may dial 1-888-428-4479 in the U.S. and Canada
and 1-651-291-0561 international.
About Intertape Polymer Group
Intertape Polymer Group is a recognized leader in the
development and manufacture of specialized polyolefin plastic
and paper based packaging products and complementary packaging
systems for industrial and retail use. Headquartered in Montreal, Quebec
and Sarasota/Bradenton, Florida, the Company
employs approximately 2,800 employees with operations in 21
locations, including 15 manufacturing facilities in North
America and one in Europe.
Safe Harbor Statement
The reader should note that the Company's forward-looking
statements speak only as of the date of this media release
or when made and the Company undertakes no duty or obligation
to update or revise its forward-looking statements. Although
management believes that the expectations, plans, intentions and
projections reflected in its forward-looking statements are reasonable,
such statements are subject to known and unknown risks, uncertainties
and other factors that may cause the Company's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements.
The risks, uncertainties and other factors that the Company's
stockholders and prospective investors should consider include, but are
not limited to, the following: risks associated with pricing, volume and
continued strength of markets where the Company's products are sold;
delays and disruptions associated with terrorist attacks and reprisals,
political instability, heightened security and war in countries of the world
that affect the Company's business; the effect of competition on the
Company's ability to maintain margins on existing or acquired
operations; and other risk factors listed from time to time in the
Company's reports (including its Annual Report on Form 40-F) filed with
the U.S. Securities and Exchange Commission.
FOR FURTHER INFORMATION
CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel.: 866-202-4713
E-mail: itp$info@intertapeipg.com
Web: www.intertapepolymer.com