Profile: Xerium Technologies, Inc. (XRM)

Xerium Technologies, Inc. (Xerium) is a manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company operates through two principal business segments: clothing and roll covers. The clothing segment products include various types of industrial textiles used on paper-making machines and other industrial applications. Through its roll covers segment, Xerium manufactures various types of roll covers, refurbish previously installed roll covers, provide mechanical services for the internal mechanisms of rolls used on paper-making machines and manufacture spreader rolls. As of December 31, 2008, the Company has a global footprint of 34 manufacturing facilities in 14 countries, located in the major paper-producing regions of North America, Europe, South America and Asia-Pacific.

Clothing Products

The Company's clothing segment products are large, highly engineered synthetic textile belts that transport paper as it is processed on a paper-making machine from paper stock into finished paper. Clothing generally ranges in size from approximately 3 feet to over 30 feet wide and 24 feet to more than 460 feet long and operates on paper-making machines that run at speeds up to 7,500 feet per minute. It manufactures the three general types of clothing products used on paper-making machines, forming fabrics, press felts and dryer fabrics, each of which is located in a different section of a machine. Forming fabrics are used at the beginning of paper-making machines, where highly diluted paper stock is deposited on the forming fabric while the fabric is traveling at a very high speed. Press felts are used to carry the paper sheet through a series of press rolls that mechanically press water from the sheet under high pressure. Dryer fabrics are used to transport the paper sheet through the drying section of paper-making machines, where high temperatures from large, steam-heated dryer cylinders evaporate the remaining moisture from the paper sheet. During the year ended December 31, 2008, dryer fabrics accounted for approximately 5% of net sales in its clothing segment.

Xerium also manufactures other types of clothing used in other industrial applications, such as steel, plastics, leather and textiles manufacturing. During 2008, sales for such industrial applications accounted for 11% of net sales in its clothing segment. It also manufactures auto-joining equipment used on paper-making machines. Sales of auto-joining equipment accounted for approximately 1% of net sales in its clothing segment in 2008. In addition, Xerium has developed new clothing products aimed at segments of the paper-making process that it has not served, such as the market for shoe press belts and other clothing products designed for use in the technologically-advanced press section of a paper-making machine.

Roll Covers Products and Services

In the Company’s roll covers segment, the majority of its sales are generated through the manufacture of roll covers. It also refurbishes previously installed roll covers, provide general mechanical maintenance and repair services for the internal mechanisms of rolls and manufacture spreader rolls. Xerium manufactures, refurbish and replace covers for three kinds of rolls on paper-making machines: working rolls (including vacuum rolls and press rolls), calendar rolls and coater rolls. Roll covers are typically replaced every 2 to 5 years. Sales of roll covers accounted for approximately 59% of its total sales in its roll covers segment in 2008. Xerium offer a range of mechanical maintenance and repair services for the internal mechanisms of rolls. As of December 31, 2008, it provided major mechanical services at 10 locations worldwide. During 2008, Xerium introduced SmartRoll, a pressure sensing paper machine roll.

During 2008, sales to the paper-making industry accounted for approximately 92% of the Company’s total sales in its roll covers segment. Paper producers accounted for approximately 78% of net sales, and paper-making machine manufacturers accounted for approximately 14% of net sales. Sales for use in other industrial applications, including steel, plastics, leather and textiles manufacturing, accounted for the remaining 8% of its net sales in its roll covers segment.

The Company competes with Albany International Corporation, Voith AG and Metso Corporation.