UNITED STATES

                        SECURITIES AND EXCHANGE COMMISSION

                              Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 1998

                                        OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

     SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission file number 0-15899

                                  WELLMAN, INC.
                                  -------------
               (Exact name of registrant as specified in its charter)

                     Delaware                               04-1671740
                     --------                               ----------
            (State or other jurisdiction of               (I.R.S. Employer
            incorporation or organization)               Identification No.)

                     1040 Broad Street, Shrewsbury, NJ 07702
                     ---------------------------------------
                     (Address of principal executive offices)

                                  (732) 542-7300
                                  --------------
               (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes X     No

     As of August 5, 1998, there were 33,780,752 shares of the registrant's
common stock, $.001 par value, outstanding and no shares of Class B common
stock outstanding.










<PAGE>
                                   WELLMAN, INC.

                                      INDEX



                                                                     Page No.
                                                                     --------
PART I - FINANCIAL INFORMATION

   ITEM 1 - Financial Statements

        Condensed Consolidated Statements of Income -
             For the three and six months ended June 30, 1998 and 1997   3

        Condensed Consolidated Balance Sheets -
             June 30, 1998 and December 31, 1997 . . . . . . . . . . .   4

        Condensed Consolidated Statements of Stockholders' Equity. . .   5

        Condensed Consolidated Statements of Cash Flows -
             For the six months ended June 30, 1998 and 1997   . . . .   6

        Notes to Condensed Consolidated Financial Statements . . . . . 7 - 9

   ITEM 2 - Management's Discussion and Analysis of
             Financial Condition and Results of Operations . . . . . .10 - 16

PART II - OTHER INFORMATION

   ITEM 4 - Submission of Matters to a Vote of Security Holders. . . .17 - 18

   ITEM 6 - Exhibits and Reports on Form 8-K . . . . . . . . . . . . .  19

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20


























                                        2
<PAGE>
<TABLE>
                                   WELLMAN, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)

<CAPTION>
                                       THREE MONTHS          SIX MONTHS
                                      ENDED JUNE 30,        ENDED JUNE 30,
                                      -------------         --------------
                                      1998      1997        1998      1997
                                     ------    ------      ------    ------
<S>                                 <C>       <C>         <C>       <C>
Net sales. . . . . . . . . . . . .  $261,268  $279,211    $524,341  $534,359

Cost of sales. . . . . . . . . . .   217,766   237,933     438,614   453,952
                                    --------  --------    --------  --------
Gross profit . . . . . . . . . . .    43,502    41,278      85,727    80,407

Selling, general and
 administrative expenses . . . . .    19,036    20,587      38,382    41,130

Restructuring charges. . . . . . .        --     7,469          --     7,469
                                    --------  --------    --------  --------

Operating income . . . . . . . . .    24,466    13,222      47,345    31,808

Interest expense, net  . . . . . .     2,254     3,922       4,632     7,197
                                    --------  --------    --------  --------
Earnings before income taxes . . .    22,212     9,300      42,713    24,611

Income taxes . . . . . . . . . . .     7,800     3,999      15,590    10,583
                                    --------  --------    --------  --------

Net earnings . . . . . . . . . . .  $ 14,412  $  5,301    $ 27,123  $ 14,028
                                    ========  ========    ========  ========

Basic net earnings per
 common share  . . . . . . . . . .  $   0.46  $   0.17    $   0.87  $   0.45
                                    ========  ========    ========  ========

Diluted net earnings per
 common share. . . . . . . . . . .  $   0.46  $   0.17    $   0.86  $   0.45
                                    ========  ========    ========  ========
</TABLE>




            See notes to condensed consolidated financial statements.















                                        3
<PAGE>
<TABLE>
                                  WELLMAN, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
<CAPTION>
                                                    June 30,     December 31,
                                                      1998           1997
                                                   ----------    ------------
<S>                                                <C>            <C>
Assets
Current assets:
  Cash and cash equivalents. . . . . . . . . . .   $       --     $       --
  Accounts receivable, less allowance of $4,811
   in 1998 and $ 5,229 in 1997 . . . . . . . . .      121,788        126,106
  Inventories. . . . . . . . . . . . . . . . . .      179,186        154,133
  Prepaid expenses and other current assets. . .        4,666          3,366
                                                   ----------     ----------
     Total current assets. . . . . . . . . . . .      305,640        283,605
Property, plant and equipment, at cost:
  Land, buildings and improvements . . . . . . .      104,776        104,073
  Machinery and equipment. . . . . . . . . . . .      735,916        735,144
  Construction in progress . . . . . . . . . . .      356,276        251,493
                                                   ----------     ----------
                                                    1,196,968      1,090,710
  Less accumulated depreciation. . . . . . . . .      367,030        336,230
                                                   ----------     ----------
     Property, plant and equipment, net. . . . .      829,938        754,480
Cost in excess of net assets acquired, net . . .      265,359        269,756
Other assets, net. . . . . . . . . . . . . . . .       11,275         11,384
                                                   ----------     ----------
                                                   $1,412,212     $1,319,225
                                                   ==========     ==========
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable . . . . . . . . . . . . . . .   $   62,019     $   73,070
  Accrued liabilities. . . . . . . . . . . . . .       38,954         39,590
  Current portion of long-term debt. . . . . . .       24,165            208
                                                   ----------     ----------
     Total current liabilities . . . . . . . . .      125,138        112,868
Long-term debt . . . . . . . . . . . . . . . . .      449,881        394,545
Deferred income taxes and other liabilities. . .      179,526        177,378
                                                   ----------     ----------
     Total liabilities . . . . . . . . . . . . .      754,545        684,791
Stockholders' equity:
  Common stock, $0.001 par value; 55,000,000
   shares authorized, 33,768,823 shares issued
   in 1998, 33,638,193 in 1997 . . . . . . . . .           34             34
  Class B common stock, $0.001 par value; 5,500,000
   shares authorized; no shares issued . . . . .           --             --
  Paid-in capital. . . . . . . . . . . . . . . .      236,905        234,179
  Accumulated other comprehensive income . . . .         (643)           372
  Retained earnings. . . . . . . . . . . . . . .      470,895        449,373
  Less common stock in treasury at cost:
   2,500,000 shares. . . . . . . . . . . . . . .      (49,524)       (49,524)
                                                   ----------     ----------
     Total stockholders' equity. . . . . . . . .      657,667        634,434
                                                   ----------     ----------
                                                   $1,412,212     $1,319,225
                                                   ==========     ==========
</TABLE>
            See notes to condensed consolidated financial statements.

                                        4
<TABLE>
                                               WELLMAN, INC.
                            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'EQUITY
                                               (In thousands)
<CAPTION>

                                     COMMON                  ACCUMULATED
                                  STOCK ISSUED                  OTHER
                                 ---------------    PAID-IN COMPREHENSIVE   RETAINED TREASURY
                                 SHARES   AMOUNT    CAPITAL     INCOME      EARNINGS   STOCK     TOTAL
                                 ------   ------    -------    ----------   --------  -------    -----
 <S>                             <C>       <C>      <C>         <C>         <C>      <C>       <C>  
 Balance at December 31, 1996 .  33,612    $34      $233,665    $ 9,853     $429,900 $(49,524) $623,928
 Net earnings . . . . . . . . .                                               30,355             30,355
 Currency translation
    adjustment. . . . . . . . .                                  (9,481)               (9,481)
 Cash dividends ($0.35
  per share)  . . . . . . . . .                                              (10,882)           (10,882)
 Exercise of stock options. . .      25                  453                              453
 Issuance of restricted stock .       1                   16                               16
 Tax effect of exercise of
  stock options . . . . . . . .                           45                               45
                                 ------    ---      --------    -------     -------- --------  --------
 Balance at December 31, 1997 .  33,638    $34      $234,179       $372     $449,373 $(49,524) $634,434
 Net earnings . . . . . . . . .                                               27,123             27,123
 Currency translation
    adjustment. . . . . . . . .                                  (1,015)                         (1,015)
 Cash dividends ($0.18 per
  share). . . . . . . . . . . .                                               (5,601)            (5,601)
 Exercise of stock options. . .      54                1,002                                      1,002
 Issuance of restricted stock .      77                1,608                                      1,608
 Tax effect of exercise of
  stock options . . . . . . . .                          116                                        116
                                 ------    ---      --------    -------     -------- --------  --------
 Balance at June 30, 1998 . . .  33,769    $34      $236,905    $  (643)    $470,895 $(49,524) $657,667
                                 ======    ===      ========    =======     ======== ========  ========

</TABLE>
                     See notes to condensed consolidated financial statements.
 
 

 
                                                     5
 <PAGE>
<TABLE>
                                  WELLMAN, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                  (In thousands)
<CAPTION>
                                                       1998           1997
                                                       ----           ----
<S>                                                  <C>             <C>
Cash flows from operating activities:
  Net earnings. . . . . . . . . . . . . . . . . . .  $ 27,123        $14,028
  Adjustments to reconcile net earnings to net
   cash provided by operating activities:
     Depreciation . . . . . . . . . . . . . . . . .    31,571         29,841
     Amortization . . . . . . . . . . . . . . . . .     4,368          5,600
     Deferred income taxes. . . . . . . . . . . . .     6,048          4,540
     Restricted stock issued for compensation . . .       392             --
     Changes in assets and liabilities. . . . . . .   (36,599)        (3,774)
                                                     --------        -------

  Net cash provided by operating activities . . . .    32,903         50,235
                                                     --------        -------
Cash flows from investing activities:
  Additions to property, plant and equipment. . . .  (107,745)       (84,787)
  Other investing activities. . . . . . . . . . . .        --          5,016
                                                     --------        -------

  Net cash used in investing activities . . . . . .  (107,745)       (79,771)
                                                      -------        -------
Cash flows from financing activities:
  Net borrowings of long-term debt. . . . . . . . .    79,443         32,905
  Dividends paid on common stock. . . . . . . . . .    (5,601)        (5,283)
  Exercise of stock options . . . . . . . . . . . .     1,002             --
                                                      -------        -------

  Net cash provided by financing
   activities . . . . . . . . . . . . . . . . . . .    74,844         27,622
                                                      -------        -------
Effect of exchange rate changes on cash
  and cash equivalents. . . . . . . . . . . . . . .        (2)          (206)
                                                      -------        -------

Increase (decrease) in cash and cash equivalents. .       ---         (2,120)
Cash and cash equivalents at beginning of period. .       ---          2,120
                                                      -------        -------

Cash and cash equivalents at end of period. . . . .  $    ---        $   ---
                                                     ========        =======

Supplemental cash flow data:
  Cash paid during the period for:
    Interest (net of amounts capitalized) . . . . .  $  5,770        $ 8,311
    Income taxes. . . . . . . . . . . . . . . . . .  $  7,832        $13,616
  Non-cash investing activities financed
   through government grants. . . . . . . . . . . .  $  6,639        $10,684
  Non-cash settlement of deferred compensation
   liability financed through the issuance of
   restricted stock . . . . . . . . . . . . . . . .  $  1,216        $    --

</TABLE>
           See notes to condensed consolidated financial statements.


                                        6
<PAGE>
                                   WELLMAN, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                (Information for the three and six months ended
                       June 30, 1998 and 1997 is unaudited)
                                  (In thousands)

1.  BASIS OF PRESENTATION

    The results of operations for the three and six month periods are not
necessarily indicative of those for the full year.

    In the opinion of management, the accompanying unaudited condensed
consolidated financial statements are presented on a basis consistent with
the audited statements, and all adjustments, which consist only of normal
recurring adjustments necessary to present fairly the financial position and
the results of operations for the periods indicated, have been reflected.

2.  NET EARNINGS PER COMMON SHARE

    The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
                                     Three Months Ended     Six Months Ended
                                    June 30,   June 30,    June 30,   June 30,
                                     1998       1997         1998      1997
                                    ------     ------       ------    ------
<S>                                 <C>        <C>         <C>        <C>
Numerator for basic and diluted
 earnings per share:
  Net Income. . . . . . . . . . . . $14,412    $ 5,301     $27,123    $14,028
                                    -------    -------     -------    -------
Denominator:
  Denominator for basic earnings per
   share - weighted average shares.  31,173     31,113      31,156     31,113
  Effect of dilutive securities:
    Employee stock options and
     restricted stock . . . . . . .     463         16         324         24
                                    -------    -------     -------    -------
  Denominator for diluted earnings
   per share-adjusted weighted
   average shares . . . . . . . . .  31,636     31,129      31,480     31,137
                                    =======    =======     =======    =======
Basic earnings per share. . . . . . $  0.46    $  0.17     $  0.87    $  0.45
                                    =======    =======     =======    =======
Diluted earnings per share. . . . . $  0.46    $  0.17     $  0.86    $  0.45
                                    =======    =======     =======    =======
</TABLE>
3.  INVENTORIES

    Inventories consist of the following:
<TABLE>
<CAPTION>
                                         June 30,          December 31,
                                           1998                1997
                                         --------            ---------
    <S>                                  <C>                 <C>
    Raw materials. . . . . . . . . . .   $ 57,134            $ 50,669
    Finished and semi-finished goods .    108,406              90,210
    Supplies . . . . . . . . . . . . .     13,646              13,254
                                         --------            --------
                                         $179,186            $154,133
                                         ========            ========
</TABLE>
4.  ENVIRONMENTAL MATTERS

    The Company's operations are subject to extensive laws and regulations
governing air emissions, wastewater discharges and solid and hazardous waste

                                     7
<PAGE>
management activities.  The Company's policy is to accrue environmental
remediation costs when it is both probable that a liability has been incurred
and the amount can be reasonably estimated.  While it is often difficult to
reasonably quantify future environmental-related expenditures, the Company
currently estimates its future non-capital expenditures related to
environmental matters to range between $10,300 and $25,900.  In connection
with these expenditures, the Company has accrued an amount at June 30, 1998
within this range representing management's best estimate of probable non-
capital environmental expenditures.  In addition, future capital expenditures
aggregating approximately $8,700 to $28,300 may be required related to
environmental matters.  These non-capital and capital expenditures are
estimated to be incurred over the next 10 to 20 years.  The Company believes
that it is entitled to recover a portion of these expenditures under
indemnification and escrow agreements.

5.  COMPREHENSIVE INCOME

    Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income".  This
statement establishes standards for the reporting and display of
comprehensive income and its components.  Comprehensive income for the
Company represents net income adjusted for foreign currency translation
adjustments.  Comprehensive income was $16,241 and $2,937 for the three
months ended June 30, 1998 and 1997, respectively, and $26,108 and $8,233 for
the six months ended June 30, 1998 and 1997, respectively.

6.  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

    In April 1998, the AICPA issued Statement of Position 98-5, "Reporting on
the Costs of Start-Up Activities" (SOP 98-5).  SOP 98-5 requires that costs
incurred during start-up activities, including organization costs, be
expensed as incurred.  SOP 98-5 is effective for financial statements for
fiscal years beginning after December 15, 1998.  Initial application of SOP
98-5 should be as of the beginning of the fiscal year in which SOP 98-5 is
first adopted and should be reported as a cumulative effect of a change in
accounting principle.

    The Company expects to adopt SOP 98-5 in the first quarter of 1999.  The
estimated impact of the adoption of SOP 98-5 on the results of operations
will be an after tax charge of approximately $3,000 in the first quarter of
1999 for the cumulative effect of a change in accounting principle.  In
addition, start-up costs to be incurred and expensed in 1999 are estimated to
be less than $5,000.

    In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information" (FAS 131), effective for fiscal years
beginning after December 15, 1997.  FAS 131 requires that a public company
report financial and descriptive information about its reportable operating
segments pursuant to criteria that differ from current accounting practice.
Operating segments, as defined in FAS 131, are components of an enterprise
for which separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how to allocate
resources and in assessing performance.  The financial information to be
reported includes segment profit or loss, certain revenue and expense items
and segment assets and reconciliations to corresponding amounts in the
general purpose financial statements.  FAS 131 also requires information
about products and services, geographic areas of operation, and major
customers.  The Company has not completed its analysis of the effect of
adoption of FAS 131 on its financial statement disclosure; however, the

                                     8
<PAGE>
adoption of FAS 131 will not affect results of operations or financial
position.

    In June 1998, the Financial Accounting Standards Board issued Statement
No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FAS
133), effective for fiscal years beginning after June 15, 1999.  The Company
expects to adopt the new Statement effective January 1, 2000.  The Statement
will require the Company to recognize all derivatives on the balance sheet at
fair value.  Derivatives that are not hedges must be adjusted to fair value
through income.  If the derivative is a hedge, depending on the nature of the
hedge, changes in the fair value of derivatives will either be offset against
the change in fair value of the hedged assets, liabilities, or firm
commitments through earnings or recognized in other comprehensive income
until the hedged item is recognized in earnings.  Any portion of a
derivative's change in fair value which is not effective as a hedge of the
underlying assets, liabilities, or firm commitments will be immediately
recognized in earnings.  The Company has not yet determined what the effect
of FAS 133 will be on its results of operations or financial position.











































                                     9
<PAGE>
                                 WELLMAN, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

    The Company's primary business is the manufacture and marketing of high-
quality polyester products, including Fortrel(R) brand polyester textile
fibers, polyester fibers made from recycled raw materials and PermaClear(R)
brand PET (polyethylene terephthalate) packaging resins.  The Company
currently has annual capacity to manufacture approximately 1.1 billion pounds
of fiber and 610 million pounds of resins worldwide at five major production
facilities in the United States and Europe.  The Company is also the world's
largest PET plastics recycler, utilizing a significant amount of recycled raw
materials in its manufacturing operations.

    The Company plans to substantially increase its polyester fiber and PET
resins production capacity through the construction of its new, state-of-the-
art Pearl River Plant in Mississippi.  This facility is expected to commence
operation in three phases beginning in late 1998 through the third quarter of
1999.  Sales are expected to increase during the course of 1999 as a result
of additional volumes from this facility.  By the year 2002, this facility is
expected to have annual capacity to manufacture approximately 570 million
pounds of resins and 230 million pounds of fiber.  As a result, the Company's
production mix is expected to be approximately 50% fibers and 50% PET resins.

    The Fibers Group produces Fortrel(R) textile fibers, which currently
represent approximately 60% of the Company's fiber production.  These fibers
are used in apparel and home furnishings and are produced from two chemical
raw materials, purified terephthalic acid (PTA) and monoethylene glycol
(MEG).  The other 40% of fiber production, primarily fiberfill and carpet
fibers, is manufactured by the Recycled Products Group from recycled raw
materials, including postindustrial fiber, resin and film materials and
postconsumer PET soft drink bottles.  The Company's PET resins, produced by
the Packaging Products Group from PTA and MEG, are primarily used in the
manufacture of clear plastic soft drink bottles and other food and beverage
packaging.

    The Company's markets are highly competitive.  It competes in these
markets primarily on the basis of product quality, customer service, brand
identity and price.  It believes it is the second-largest polyester staple
and fourth-largest POY producer in the United States and the fourth-largest
PET resins producer in North America.  Several of the Company's competitors
are substantially larger than the Company and have substantially greater
economic resources.

    Demand for polyester fiber historically has been cyclical, as it is
subject to changes in consumer preferences and spending, retail sales
patterns, and fiber or textile product imports, all of which are driven
primarily by general economic conditions.  Since late 1997, the Far East has
been experiencing a significant economic and financial crisis.  This crisis
has led to higher imports of polyester fiber, fabric and apparel, and fiber
price pressure in the U.S. and Europe, which has adversely affected
profitability.  Global PET resins demand continues to grow, driven by new
product applications for PET and conversions from other packaging materials
to PET.

    Several factors significantly affect the Company's profitability: raw
material margins, which are the difference (or spread) between product
selling prices and raw material costs; supply and demand for its products;

                                      10
<PAGE>
the prices of competing materials, such as cotton, which can affect demand
for its products; and economic and market conditions in the United States,
Europe, the Far East and other regions of the world.

    Raw material margins for the chemical-based fiber and PET resins
businesses have generally been influenced by supply and demand factors.
Worldwide supply of these products, as well as their raw materials, PTA and
MEG, continues to undergo significant expansion.  Prices of PTA and MEG,
major determinants of polyester fiber and PET resins selling prices, are
cyclical.  Changes in PTA and MEG prices are driven by worldwide supply and
demand.  Both fiber and resins margins experience increases or decreases due
to timing of price changes and market conditions.

    Raw material margins for the recycled fiber operation tend to be more
variable than those for the chemical-based businesses, primarily because
changes in recycled raw material costs generally move independently from
fiber prices.  Recycled raw material costs are primarily dependent upon
worldwide supply and demand for recycled materials.

    The Company's sales are not materially dependent upon a single customer.
Sales for PET resins, primarily for soft drink bottles and other beverages,
may be influenced by weather.  Demand, prices and raw material costs for both
fiber and PET resins may be affected by global economic conditions, supply
and demand balances, the prices of competing materials, such as cotton, and
export activity.

THREE MONTHS ENDED JUNE 30, 1998 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
1997

    Net sales for the three months ended June 30, 1998 decreased 6.4% to
$261.3 million from $279.2 million for the three months ended June 30, 1997.
This decrease was primarily the result of lower worldwide polyester fiber
selling prices and the loss of sales of Creative Forming, Inc. (CFI), which
was sold in December 1997.  Sales for the Fibers Group decreased 14.3% to
$91.8 million in the 1998 period from $107.1 million in the 1997 period due
to lower polyester fiber selling prices.  Sales for the Recycled Products
Group (RPG) remained essentially unchanged at $98.2 million in the 1998
period compared to $98.1 million in the year-ago period due primarily to
higher worldwide recycled polyester fiber sales volumes which offset lower
worldwide polyester fiber selling prices.  Sales for the Packaging Products
Group (PPG) decreased 3.6% in the 1998 period to $71.3 million from $74.0
million in the 1997 period resulting from increased domestic PET resin sales
offset by the divestiture of CFI, which had sales in the second quarter of
1997 of $5.9 million, and decreased sales volumes at the Company's European
resins operation due to the restructuring in the second quarter of 1997 (see
below).

    Gross profit for the three months ended June 30, 1998 increased 5.3% to
$43.5 million for the 1998 period from $41.3 million for the comparable 1997
period.  The gross profit margin for the 1998 period was 16.7% compared to
14.8% for the 1997 period.  This increase was primarily the result of
increased profitability in the PPG, which offset lower profitability in both
the Fibers Group and the RPG.  Gross profit for the PPG increased
significantly in the 1998 period compared to the 1997 period due primarily to
lower worldwide raw material and overall costs.  Gross profit for the Fibers
Group decreased in the 1998 period as compared to the 1997 period due to
lower polyester fiber selling prices which more than offset lower raw
material costs.  Gross profit for the RPG decreased in the 1998 period as
compared to the year-ago period due primarily to higher domestic raw material
costs and lower worldwide polyester fiber selling prices.

                                      11
<PAGE>
    Selling, general and administrative expense amounted to $19.0 million, or
7.3% of sales, for the 1998 period compared to $20.6 million, or 7.4% of
sales, for the 1997 period.  The decrease was due to reduced costs at the
Company's European operations resulting from the restructuring plan
implemented in the second quarter of 1997 and the divestiture of CFI.

    During the second quarter of 1997, the Company implemented a
restructuring plan designed to reduce costs and enhance the competitive
position of its European operations, resulting in a pre-tax charge of
approximately $7.5 million.  The restructuring charge consisted of costs for
reducing the number of pounds required to be purchased under a take-or-pay
supply arrangement and the modification of certain service agreements at its
Netherlands-based PET resins business.  The restructuring charge also
included termination benefits related to a workforce reduction at the
Company's Irish fiber operation.

    As a result of the foregoing, operating income was $24.5 million for the
second quarter of 1998 compared to $13.2 million, or $20.7 million excluding
the restructuring charge, for the second quarter of 1997.

    Interest expense was $2.3 million for the 1998 period compared to $3.9
million for the 1997 period.  The decrease in interest expense is due to
higher interest capitalization resulting from the Company's ongoing capital
investment program.

    The effective income tax rate was 35.1% in the second quarter of 1998
compared to 43.0% in the comparable 1997 period.  The tax rate decreased
primarily as a result of an overall increase in earnings in conjunction with
increased earnings at the Company's Irish fiber operation, which is subject
to significantly lower tax rates than the U.S. operations, and the reduction
in foreign operating losses for which no tax benefit had been provided.

    As a result of the foregoing, net earnings in the three months ended June
30, 1998 were $14.4 million, or $0.46 per diluted share, compared to $5.3
million, or $0.17 per diluted share, for the three months ended June 30,
1997.  Excluding the restructuring charge, net earnings for the 1997 period
were $9.6 million, or $0.31 per diluted share.

SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997

    Net sales for the six months ended June 30, 1998 decreased 1.9% to $524.3
million from $534.4 million for the six months ended June 30, 1997.  This
decrease was primarily the result of lower worldwide polyester fiber selling
prices.  Sales for the Fibers Group decreased 9.7% to $191.9 million in the
1998 period from $212.5 million in the 1997 period due to lower polyester
fiber selling prices.  Sales for the RPG increased 5.2% to $202.8 million in
the 1998 period from $192.8 million in the year-ago period due primarily to
an increase in worldwide recycled polyester fiber sales volumes and increased
sales in other divisions offsetting lower worldwide polyester fiber selling
prices.  Sales for the PPG increased slightly in the 1998 period to $129.7
million from $129.0 million in the 1997 period due to higher worldwide PET
resins selling prices and increased domestic sales volumes offsetting the
divestiture of CFI, which had sales in the first half of 1997 of $11.0
million, and decreased sales volumes at the Company's European resins
operation due to the restructuring in the second quarter of 1997 (see above).

    Gross profit for the six months ended June 30, 1998 increased 6.6% to
$85.7 million for the 1998 period from $80.4 million for the comparable 1997
period.  The gross profit margin for the 1998 period was 16.3% compared to
15.0% for the 1997 period.  This increase was primarily the result of

                                      12
<PAGE>
increased profitability in the PPG, which offset lower profitability in both
the Fibers Group and the RPG.  Gross profit for the PPG increased
significantly in the 1998 period compared to the 1997 period due primarily to
lower worldwide raw material costs and higher selling prices.  Gross profit
for the Fibers Group decreased in the 1998 period as compared to the 1997
period due to lower polyester fiber selling prices which more than offset
lower raw material costs.  Gross profit for the RPG decreased in the 1998
period as compared to the year-ago period due primarily to higher domestic
raw material costs and lower worldwide polyester fiber selling prices, which
offset lower raw material costs at the Company's Irish fiber operation.

    Selling, general and administrative expense amounted to $38.4 million, or
7.3% of sales, for the 1998 period compared to $41.1 million, or 7.7% of
sales, for the 1997 period.  The decrease is due to reduced costs at the
Company's European operations resulting from the restructuring plan
implemented in the second quarter of 1997 (see above) and the divestiture of
CFI.

    As a result of the foregoing, operating income was $47.3 million for the
first six months of 1998 compared to $31.8 million, or $39.3 million
excluding the restructuring charge, for the comparable 1997 period.

    Interest expense was $4.6 million for the 1998 period compared to $7.2
million for the 1997 period.  The decrease in interest expense is due to
higher interest capitalization resulting from the Company's ongoing capital
investment program.

    The effective income tax rate was 36.5% in the first six months of 1998
compared to 43.0% in the comparable 1997 period.  The tax rate decreased
primarily as a result of an overall increase in earnings in conjunction with
increased earnings at the Company's Irish fiber operation, which is subject
to significantly lower tax rates than the U.S. operations, and the reduction
in foreign operating losses for which no tax benefit had been provided.

    As a result of the foregoing, net earnings in the six months ended June
30, 1998 were $27.1 million, or $0.86 per diluted share, compared to $14.0
million, or $0.45 per diluted share for the six months ended June 30, 1997.
Excluding the restructuring charge, net earnings for the 1997 period were
$18.3 million, or $0.59 per diluted share.

OUTLOOK

    The worldwide polyester fiber market has begun to experience some effects
from the financial crisis of the Far East which began in late 1997.  In the
United States, higher imports of polyester fiber, fabric and apparel have
led to sluggish demand and intense price competition.  This situation is
expected to continue and to affect the European polyester fiber market in the
future.  Domestic fiber profit margins are expected to remain at low levels
primarily due to continued downward pressure on selling prices.

    To date, the PET resins market has experienced little effect from the Far
Eastern financial crisis.  However, the Company expects some adverse impact
in the European PET resins market beginning in the second half of 1998.

    The Company is nearing completion of construction of its Pearl River
Plant in Mississippi.  Resin production at this facility is expected to come
on-line in phases beginning in late 1998 through the second quarter of 1999.
As a result, resins sales are expected to increase during the course of 1999.
The plant's fiber production line is expected to commence operation in the
third quarter of 1999.  In line with the current start-up plan, the Company

                                      13
<PAGE>
plans to perform previously delayed maintenance on various production lines
at other facilities over the next 18 months.  As a result, fiber volumes are
expected to increase only modestly during the latter part of 1999.  The
start-up of the Pearl River Plant and other worldwide fiber and resins
capacity expansions in 1998 and 1999 may result in downward pressure on
selling prices and profit margins during the second half of 1998 and in 1999.

    In 1999, the Company's results of operations will be impacted by certain
increased expenses associated with the start-up of the Pearl River Plant.
Interest costs, previously capitalized during the construction of the
facility, will be expensed as incurred.  The Company will also begin
depreciating the facility in phases as each production line commences
operation.  Additionally, in accordance with SOP 98-5, one-time start-up
costs associated with the new facility that will be expensed are estimated to
be less than $5 million in 1999.  Accordingly, net earnings from continuing
operations may be adversely affected during 1999.

LIQUIDITY AND CAPITAL RESOURCES

    Net cash provided by operations was $32.9 million for the six months
ended June 30, 1998 compared to $50.2 million for the six months ended June
30, 1997.  The decrease in cash from operations was primarily the result of
increased inventory levels in preparation for the start-up of the Company's
Pearl River Plant.

    Net cash used in investing activities amounted to $107.7 million in the
first six months of 1998 compared to $79.8 million in the first six months of
1997.  Capital spending amounted to $107.7 in the 1998 period compared to
$84.8 million in the 1997 period reflecting the Company's ongoing capital
investment program.

    Net cash provided by financing activities amounted to $74.8 million in
the first half of 1998 compared to $27.6 million in the comparable 1997
period.  Net borrowings amounted to $79.4 million in the 1998 period compared
to $32.9 million in the 1997 period as a result of the Company's ongoing
capital investment program.

    In 1998, the Company adopted a policy that requires all outside members
of the Board of Directors and certain officers to achieve designated levels
of stock ownership over the next five years.  Members of management must own
shares of stock valued at up to four times their annual base salary.  In
addition, a restricted stock plan was approved by the stockholders at the
annual meeting in May 1998.  During the second quarter of 1998, directors and
officers acquired approximately 77,000 shares of restricted stock.

    With the completion of the PET resins capacity expansion at the
Darlington, SC plant in the second quarter of 1997, the major portion of the
Company's ongoing capital investment program is the construction of its Pearl
River Plant in Mississippi.  The total capitalized cost of the facility is
estimated to range between $470 and $500 million.  This facility,
approximately 76% completed, is expected to be operational in three phases
beginning in late 1998 through the third quarter of 1999.  The Company's
planned aggregate capital expenditures in the remainder of 1998 and through
the end of 1999 are estimated to range between $210 and $240 million.  The
exact amount and timing of the capital spending is difficult to predict due
to equipment delivery and construction schedules.

    The Company's financing agreements contain normal financial and
restrictive covenants.  Certain subsidiaries have guaranteed substantially
all of the Company's indebtedness for borrowed money.  The financial
resources available to the Company at June 30, 1998 include $260 million
                                      14
<PAGE>
under its $330 million revolving credit facility, unused short-term
uncommitted lines of credit aggregating approximately $221 million, and
internally generated funds.  The Company is considering other forms of
financing including the issuance of public securities.  On July 30, 1998, the
Company filed a shelf registration statement covering the issuance of up to
$400 million of debt and/or equity securities.  The Company believes these
financial resources and other credit arrangements will be sufficient to meet
its foreseeable working capital, capital expenditure and dividends.

    The Company has entered into two types of financial instruments relating
to interest rate stabilization.  One instrument, with a notional amount of
$150 million, was designed to provide a fixed 10-year interest rate on $150
million of debt of approximately 6.6% (exclusive of corporate spreads)
if issued by September 15, 1998.  The Company has also entered into interest
rate swaps with an aggregate notional amount of $200 million at June 30, 1998
to fix the interest rate on variable rate borrowings.  These agreements have
maturity dates which range from a minimum of 5 years to a maximum of 10 years
from their inception dates (ranging from June 1997 to May 1998).  The swaps
will effectively fix the rate of interest between 6.10% and 6.20% (exclusive
of corporate spreads) on $200 million of borrowings.  In aggregate, the
Company estimates it would have had to pay approximately $19.8 million to
terminate these agreements at June 30, 1998.

    The Company has entered into forward foreign currency contracts to
exchange Dutch guilders for U.S. dollars with an aggregate notional amount of
$21.8 million at June 30, 1998 in order to reduce the related impact of
foreign currency translation adjustments.  This has the effect of converting
a portion of U.S. debt to local currency (guilder) debt.  The Company has
designated these contracts as a hedge of a net investment in a foreign
entity.  At June 30, 1998, the amount the Company would have received had
these contracts been terminated was not significant.

    The Company has also entered into forward foreign currency contracts to
exchange U.S. dollars for German marks with an aggregate notional amount of
$3.7 million at June 30, 1998.  These contracts are designed to reduce
(hedge) the impact of foreign currency fluctuations relative to fixed asset
purchase commitments and have maturity dates ranging from July 1998 through
March 1999.  At June 30, 1998, the cost to terminate these contracts was
immaterial.

    The Company's European businesses utilize foreign currency debt and
forward currency contracts to hedge certain of their accounts receivable and
accounts payable denominated in other foreign currencies.  At June 30, 1998,
the notional amount of such contracts was $11.4 million and the cost to
terminate these contracts was immaterial.

    The Company's estimates with respect to the values of its derivative
instruments are based on readily available dealer quotes.

YEAR 2000

    Based on a recent assessment, the Company determined that it will be
required to modify certain portions of its software and process equipment so
that its computer systems will function properly with respect to dates in the
year 2000 and thereafter.  The Company presently believes that with
modifications to existing software the Year 2000 Issue will not pose
significant operational problems for its computer systems.  In addition, the
Company has initiated formal communications with all of its significant
suppliers and larger customers to determine the extent to which the Company's


                                     15
<PAGE>
interface systems are vulnerable to those third parties' failure to remediate
their own Year 2000 issues.  The Company expects to complete its Year 2000
project by mid 1999, which is prior to any anticipated impact on its operating
systems.  The total project cost, which will be expensed as incurred, is not
expected to have a material effect on the results of operations.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

    In April 1998, the AICPA issued Statement of Position 98-5, "Reporting on
the Costs of Start-Up Activities" (SOP 98-5).  The Company expects to adopt
SOP 98-5 in the first quarter of 1999.  The estimated impact of the adoption
of SOP 98-5  on the results of operations will be an after tax charge of
approximately $3 million in the first quarter of 1999 for the cumulative
effect of a change in accounting principle.  In addition, start-up costs to
be incurred and expensed in 1999 are estimated to be less than $5 million.
See note 6 to the condensed consolidated financial statements.

    In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information" (FAS 131), effective for fiscal years
beginning after December 15, 1997.  The Company has not completed its
analysis of the effect of adoption of FAS 131 on its financial statement
disclosure; however, the adoption of FAS 131 will not affect results of
operations or financial position. See note 6 to the condensed consolidated
financial statements.

    In June 1998, the Financial Accounting Standards Board issued Statement
No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FAS
133), effective for fiscal years beginning after June 15, 1999.  The Company
has not yet determined what the effect of FAS 133 will be on its results of
operations or financial position.  See note 6 to the condensed consolidated
financial statements.

FORWARD-LOOKING STATEMENTS; RISKS AND UNCERTAINTIES

    Statements contained in this Form 10-Q that are not historical facts are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.  In addition, words such as
"believes," "anticipates," "expects" and similar expressions are intended to
identify forward-looking statements.  The Company cautions that a number of
important factors could cause actual results for 1998 and beyond to differ
materially from those expressed in any forward-looking statements made by or
on behalf of the Company.  Such statements contain a number of risks and
uncertainties, including, but not limited to, demand and competition for
polyester fiber and PET resins; availability and cost of raw materials;
levels of production capacity and announced changes thereto; changes in
interest rates and foreign currency exchange rates; work stoppages; natural
disasters; U.S., European and global economic conditions and changes in laws
and regulations; prices of competing products, such as cotton; and the
Company's ability to complete expansions and other capital projects on time
and budget and to maintain the operations of its existing production
facilities.  The Company cannot assure that it will be able to anticipate or
respond timely to changes which could adversely affect its operating results
in one or more fiscal quarters.  Results of operations in any past period
should not be considered indicative of results to be expected in future
periods.  Fluctuations in operating results may result in fluctuations in the
price of the Company's common stock.

    For a more complete description of the prominent risks and uncertainties
inherent in the Company's business, see the Company's Form 10-K for the year
ended December 31, 1997.
                                      16
<PAGE>
                             PART II - OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    (a) The Annual Meeting of Stockholders was held on May 19, 1998.

    (b) Not applicable.

    (c) At the Annual Meeting of Stockholders, the stockholders voted on the
        following matters:

        1.  The nominees for election as directors for the ensuing year, and
            until their successors are elected and qualified, received the
            following votes:
             Name                     For     Against/Withheld
             ----                     ---     ----------------

         Thomas M. Duff             26,179,575     481,430

         Clifford J. Christenson    26,155,307     505,698

         James B. Baker             26,192,326     468,679

         Allan R. Dragone           26,173,347     487,658

         Richard F. Heitmiller      26,187,351     473,654

         Jonathan M. Nelson         26,184,756     476,249

         James E. Rogers            26,196,305     464,700

         Raymond C. Tower           26,172,365     488,640

         Roger A. Vandenberg        26,191,320     469,685

            As a result, all of the above nominees were elected to the
            Board.(*)

        2.  The proposal to ratify the selection by the Board of Directors of
            Ernst & Young LLP as independent auditors to audit the Company's
            books and accounts for the fiscal year ending December 31, 1998
            received the following votes:  26,540,914 votes cast for, 88,088
            votes cast against, 32,003 abstentions.  As a result, the Board's
            selection of Ernst & Young LLP was approved.(*)

        3.  The proposal to ratify the adoption of the Deferred Compensation
            and Restricted Stock Plan received the following votes:
            24,066,753 votes cast for, 2,513,134 votes cast against, 81,118
            abstentions.  As a result, the adoption of the Deferred
            Compensation and Restricted Stock Plan was approved.(*)

        4.  The stockholder proposal to request the Board of Directors to
            redeem the shareholder rights issued on August 6, 1991 unless the
            issue is approved by the majority of stockholders received the
            following votes:  15,024,748 votes cast for, 7,138,312 votes
            cast against, 239,596 abstentions and 4,258,349 broker non-votes.
            As a result, the stockholder proposal was approved.




                                      17
<PAGE>
    (*) Under the rules of the New York Stock Exchange, brokers holding
        shares in street name have the authority to vote certain matters when
        they have not received instructions from the beneficial owners.
        Brokers that did not receive such instructions were entitled to vote
        on proposals 1 through 3.  As a result, broker non-votes had no
        effect on the outcome of these proposals.

    (d) Not applicable.





















































                                      18
<PAGE>
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

    (a)  Exhibits.

        4(a)  Pursuant to Item 601(b)(4)(iii) of Regulation S-K, the
              registrant has not filed herewith any instrument with respect
              to long-term debt which does not exceed 10% of the total assets
              of the registrant and its subsidiaries on a consolidated basis.
              The registrant hereby agrees to furnish a copy of any such
              instrument to the Securities and Exchange Commission upon
              request.

        10(a) Wellman, Inc. Amended and Restated Executive Retirement
              Restoration Plan, effective as of January 1, 1993, and as
              amended, effective as of June 1, 1998.

        10(b) Wellman, Inc. Deferred Compensation and Restricted Stock Plan,
              effective as of February 17, 1998, and as amended, effective as
              of June 1, 1998.

        27    Financial Data Schedule.

    (b)  Reports on Form 8-K.

              None.




































                                      19
<PAGE>
                                    SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





                                                WELLMAN, INC.



Dated August 7, 1998                           By /s/ Keith R. Phillips
      -------------                            ------------------------
                                               Keith R. Phillips
                                               Chief Financial Officer,
                                               Vice President and Treasurer
                                               (Principal Financial Officer)





Dated August 7, 1998                           By /s/ Mark J. Rosenblum
      -------------                            ------------------------
                                               Mark J. Rosenblum
                                               Chief Accounting Officer,
                                               Vice President and Controller
                                               (Principal Accounting Officer)





























                                      20
<PAGE>