Sep. 26--A Youngsville company that makes equipment for the papermaking industry will eliminate pensions for its several thousand workers worldwide and health care for its U.S. retirees and their dependents.

Xerium told the Securities and Exchange Commission that the moves will save $40 million in 2008 and $3.5 million in 2009 and thereafter. Xerium also said it would increase its matching contributions to employee 401(k) plans by about $600,000 a year.

Scores of corporations around the country, including Nortel Networks and Embarq locally, have reduced or eliminated such benefits in a bid to cut costs. Xerium is hobbled by $650 million in debt and this summer avoided bankruptcy by restructuring defaulted debt covenants.

Xerium's CEO, Stephen Light, did not return a phone call seeking comment. It is not clear how many Xerium employees and retirees will be affected by the company's move. This summer Xerium employed 60 in Youngsville and about 3,800 worldwide.

Xerium makes paper machine clothing and roll covers for the paper industry.

The company's stock closed at $6.94 a share Thursday, up 14 cents.

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