November 14, 2001 – Romeoville, IL – Nanophase Technologies Corp. has activated a temporary furlough affecting a portion of the hourly manufacturing staff at its Burr Ridge nanoparticle facility beginning Nov. 26, with fully staffed production operations restarting Jan. 7, 2002.
This action will enable the company to reduce existing inventory and lower its cost of operations during the holiday period. Manufacturing activities at the company’s new Romeoville facility will continue to normal schedules.
The company stated that the productivity and yield enhancements it implemented during the latter half of 2001 had enabled the company to produce its required 4Q01 deliveries by the end of November, and to meet its stated minimum revenue goal of $1.2 million.
During the remainder of the fourth quarter, the company will maintain adequate staff at its Burr Ridge facility to meet certain customer needs and to perform scheduled plant maintenance over the normal holiday shutdown. Nanophase will maintain full employee benefits for all affected employees.
“We fully expect to utilize our present manufacturing work force during 2002, and anticipate adding manufacturing personnel during the year,” stated Joseph Cross, Nanophase’s president and CEO. ” While this decision to furlough employees is difficult for the company, in view of the current US economic situation, it is a prudent business decision that we expect will help promote long-term growth and stability. This temporary, short-term action will allow the company to reduce inventories to an acceptable level and allow a normal manufacturing start-up on January 7.”
The company stated that it would begin production coating of nanoparticles at its Romeoville facility during November, primarily for the personal care market, beginning its manufacturing scale-up to a full two-shift operation during 2002. Initial pilot production quantities of nanoparticle dispersions would also be manufactured during the fourth quarter in the company’s recently completed pilot production facilities in Romeoville.