Sep 09, 2005. /Lesprom Network/. Appleton announced a restructuring plan for its business segments aimed at improving the company's market focus, streamlining its organizational structure, reducing costs, and positioning the company to pursue international growth opportunities. The company will be organized into three divisions: technical papers, flexible packaging and international. The new organizational structure will result in the elimination of approximately 40 jobs, primarily at the company's Appleton, Wisconsin, headquarters. The company expects that this restructuring combined with the benefits of other cost reduction efforts already in place to result in savings of $8 to $10 million in 2006. Appleton will take a charge of $3.7 million for the restructuring. "Our restructuring is part of an ongoing effort to align our business priorities and to increase value for our customers and shareholders," said Mark Richards, Appleton's chief executive officer. "To achieve those goals, we created a new division structure and aligned our technology resources to increase market focus and operating efficiencies and accelerate our product development and growth efforts." Appleton will continue to pursue growth opportunities through a balanced framework of maximizing its core businesses and extending those core businesses into complimentary markets and products. "We will use market insight and leverage our strengths in coating and encapsulation technologies to be better than anyone else at providing technically advanced papers, films and services for communication and packaging to businesses around the world," said Mr. Richards. The most significant part of the restructuring will combine into a technical papers division Appleton's carbonless, thermal and security papers businesses. Sales from those businesses in the U.S. and Canada accounted for more than $780 million of Appleton's $990 million of sales in 2004. Appleton is the world's largest producer of carbonless paper and the largest North American producer of thermal paper. Richards said that creating a technical papers division reaffirms Appleton's commitment as the market leader in the carbonless and thermal businesses and will enable the company to continue to provide its customers with the innovative products and superior service and value they expect from Appleton. Appleton will name a person to fill the new position of president of its new technical papers division. Until that appointment is made, John Depies, Appleton's vice president and general manager of thermal and advanced technical products, Jim McDermott, vice president and general manager of Appleton's coated solutions business, and Todd Downey, manufacturing director, will continue to manage those businesses. The flexible packaging division will contain Appleton's packaging subsidiaries, American Plastics and C&H Packaging in Wisconsin and New England Extrusion in Massachusetts and Wisconsin. Steve Sakai will continue to serve as the division's vice president and general manager. Appleton sells its carbonless and thermal products into approximately 60 countries and international sales accounted for more than 20 percent of Appleton's 2004 sales. Appleton expects to name a vice president and general manager for its new international division and create a team dedicated solely to increasing the company's international sales through focused sales and marketing efforts and exploring partnerships, strategic alliances, and supply agreement options. The international division will include BemroseBooth, a provider of secure and specialized print services based in Derby, United Kingdom, that Appleton acquired in December 2003. Graham Bennington will continue to serve as the chief executive officer of BemroseBooth. Appleton uses ideas that make a difference to create product solutions through its development and use of coating formulations and applications, encapsulation technology, and specialized and secure print services. The Company produces carbonless, thermal, security and performance packaging products. Appleton is headquartered in Appleton, Wisconsin, and has manufacturing operations in Wisconsin, Ohio, Pennsylvania, Massachusetts and the United Kingdom, employs approximately 3,400 people, and is 100% employee owned.