Macon, Georgia - The China Clay Producers Association announced today the composite earnings for the four major kaolin producers in the state of Georgia for 2003.  The industry posted an after tax profit of only $4.6 million which represents a return of 0.5% on the net investment. 

 "One of the major issues is continued over capacity/turmoil in our major served markets, the Paper industry.  In addition, the Georgia kaolin industry is struggling from increasing foreign competition, other competing minerals, and higher energy prices,” said Lee Lemke, Executive Vice President of the China Clay Producers Association.  “This industry has had a dismal five years.  Profitability has averaged a negative 0.76% for a five year period with significant losses reported in 2000 and 2001.” 

 “As a mature industry, the Georgia kaolin companies have experienced major restructuring and continue to reduce payroll and expenses,” said Lemke.  Direct employment in the industry now stands at 2917, down from its peak of 4500.  Restructuring has resulted in a shutdown of older unprofitable assets, which has reduced the net investment almost 32% for the four CCPA member companies. The industry’s investment in Georgia now stands at $823 million.

 “Unfortunately, the kaolin industry in Georgia is not seeing the reinvestment in capital, as assets are shifting to more profitable areas.  This redeployment of assets will continue until income numbers reflect a acceptable return on investment,” reported Lemke. 

 For further information, please contact Lee Lemke via mail at 4885 Riverside Drive, Suite 108, Macon, GA 31210; via telephone at (478) 757-1211; via fax at (478) 757-1949; or via e-mail at leelemke@georgiamining.org.

 The China Clay Producers Association members are Engelhard Corporation, Gordon, GA; IMERYS, Atlanta, GA; J.M. Huber Corporation, Atlanta, GA; and Thiele Kaolin Company, Sandersville, GA.