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 September 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 November 4, 1998, there were 31,302,039 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 nine months ended September 30, 1998 and 1997   3

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

      Condensed Consolidated Statements of Stockholders' Equity . . .    5

      Condensed Consolidated Statements of Cash Flows -
       For the nine months ended September 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 - 17

PART II - OTHER INFORMATION

   ITEM 5 - Other Information . . . . . . . . . . . . . . . . . . . .   18

   ITEM 6 - Exhibits and Reports on Form 8-K. . . . . . . . . . . . .   18

SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19


























                                        2
<PAGE>
<TABLE>
                                   WELLMAN, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)
<CAPTION>
                                       THREE MONTHS         NINE MONTHS
                                    ENDED SEPTEMBER 30,  ENDED SEPTEMBER 30,
                                      -------------         --------------
                                      1998      1997        1998      1997
                                     ------    ------      ------    ------
<S>                                 <C>       <C>         <C>       <C>
Net sales. . . . . . . . . . . . .  $237,025  $264,682    $761,373  $799,041

Cost of sales. . . . . . . . . . .   205,252   226,641     643,989   680,593
                                    --------  --------    --------  --------
Gross profit . . . . . . . . . . .    31,773    38,041     117,384   118,448

Selling, general and
 administrative expenses . . . . .    17,683    19,002      55,940    60,133

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

Operating income . . . . . . . . .    14,090    19,039      61,444    50,846

Interest expense, net  . . . . . .     1,978     3,015       6,610    10,211
                                    --------  --------    --------  --------
Earnings before income taxes . . .    12,112    16,024      54,834    40,635

Income taxes . . . . . . . . . . .     4,424     6,249      20,014    16,831
                                    --------  --------    --------  --------

Net earnings . . . . . . . . . . .  $  7,688  $  9,775    $ 34,820  $ 23,804
                                    ========  ========    ========  ========

Basic net earnings per
 common share  . . . . . . . . . .  $   0.25  $   0.31    $   1.12  $   0.77
                                    ========  ========    ========  ========

Diluted net earnings per
 common share. . . . . . . . . . .  $   0.25  $   0.31    $   1.11  $   0.76
                                    ========  ========    ========  ========
</TABLE>




            See notes to condensed consolidated financial statements.















                                        3
<PAGE>
<TABLE>
                                  WELLMAN, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
<CAPTION>
                                                  September 30,  December 31,
                                                      1998           1997
                                                   ----------    ------------
<S>                                                <C>            <C>
Assets
Current assets:
  Cash and cash equivalents. . . . . . . . . . .   $       --     $       --
  Accounts receivable, less allowance of $4,985
   in 1998 and $ 5,229 in 1997 . . . . . . . . .      115,705        126,106
  Inventories. . . . . . . . . . . . . . . . . .      186,306        154,133
  Prepaid expenses and other current assets. . .        4,056          3,366
                                                   ----------     ----------
     Total current assets. . . . . . . . . . . .      306,067        283,605
Property, plant and equipment, at cost:
  Land, buildings and improvements . . . . . . .      107,140        104,073
  Machinery and equipment. . . . . . . . . . . .      753,561        735,144
  Construction in progress . . . . . . . . . . .      395,699        251,493
                                                   ----------     ----------
                                                    1,256,400      1,090,710
  Less accumulated depreciation. . . . . . . . .     (382,558)      (336,230)
                                                   ----------     ----------
     Property, plant and equipment, net. . . . .      873,842        754,480
Cost in excess of net assets acquired, net . . .      264,252        269,756
Other assets, net. . . . . . . . . . . . . . . .       10,927         11,384
                                                   ----------     ----------
                                                   $1,455,088     $1,319,225
                                                   ==========     ==========
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable . . . . . . . . . . . . . . .   $   60,058     $   73,070
  Accrued liabilities. . . . . . . . . . . . . .       43,912         39,590
  Current portion of long-term debt. . . . . . .       51,082            208
                                                   ----------     ----------
     Total current liabilities . . . . . . . . .      155,052        112,868
Long-term debt . . . . . . . . . . . . . . . . .      449,639        394,545
Deferred income taxes and other liabilities. . .      180,930        177,378
                                                   ----------     ----------
     Total liabilities . . . . . . . . . . . . .      785,621        684,791
Stockholders' equity:
  Common stock, $0.001 par value; 55,000,000
   shares authorized, 33,797,228 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. . . . . . . . . . . . . . . .      237,416        234,179
  Accumulated other comprehensive income . . . .        5,777            372
  Retained earnings. . . . . . . . . . . . . . .      475,764        449,373
  Less common stock in treasury at cost:
   2,500,000 shares. . . . . . . . . . . . . . .      (49,524)       (49,524)
                                                   ----------     ----------
     Total stockholders' equity. . . . . . . . .      669,467        634,434
                                                   ----------     ----------
                                                   $1,455,088     $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>
 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 . . . . . . . . .                                               34,820             34,820
 Currency translation
    adjustment. . . . . . . . .                                   5,405                           5,405
 Cash dividends ($0.27 per
  share). . . . . . . . . . . .                                               (8,429)            (8,429)
 Exercise of stock options. . .      65                1,136                                      1,136
 Issuance of restricted stock .      94                1,958                                      1,958
 Tax effect of exercise of
  stock options . . . . . . . .                          143                                        143
                                 ------    ---      --------    -------     -------- --------  --------
 Balance at September 30, 1998.  33,797    $34      $237,416    $ 5,777     $475,764 $(49,524) $669,467
                                 ======    ===      ========    =======     ======== ========  ========

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

 
                                                     5
 <PAGE>
<TABLE>
                                  WELLMAN, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                  (In thousands)
<CAPTION>
                                                       1998           1997
                                                       ----           ----
<S>                                                  <C>            <C>
Cash flows from operating activities:
  Net earnings. . . . . . . . . . . . . . . . . . .  $ 34,820       $ 23,804
  Adjustments to reconcile net earnings to net
   cash provided by operating activities:
     Depreciation . . . . . . . . . . . . . . . . .    47,020         45,653
     Amortization . . . . . . . . . . . . . . . . .     6,556          8,433
     Deferred income taxes. . . . . . . . . . . . .     8,008          6,545
     Restricted stock issued for compensation . . .       746             --
     Changes in assets and liabilities. . . . . . .   (31,851)         2,009
                                                     --------        -------

  Net cash provided by operating activities . . . .    65,299         86,444
                                                     --------        -------
Cash flows from investing activities:
  Additions to property, plant and equipment. . . .  (163,161)      (144,115)
  Other investing activities. . . . . . . . . . . .        --          5,016
                                                     --------        -------

  Net cash used in investing activities . . . . . .  (163,161)      (139,099)
                                                      -------        -------
Cash flows from financing activities:
  Net borrowings of long-term debt. . . . . . . . .   105,167         68,861
  Dividends paid on common stock. . . . . . . . . .    (8,429)        (8,082)
  Exercise of stock options . . . . . . . . . . . .     1,136            255
                                                      -------        -------

  Net cash provided by financing
   activities . . . . . . . . . . . . . . . . . . .    97,874         61,034
                                                      -------        -------
Effect of exchange rate changes on cash
  and cash equivalents. . . . . . . . . . . . . . .       (12)          (445)
                                                      -------        -------

Increase (decrease) in cash and cash equivalents. .        --          7,934
Cash and cash equivalents at beginning of period. .        --          2,120
                                                      -------        -------

Cash and cash equivalents at end of period. . . . .  $     --       $ 10,054
                                                     ========       ========

Supplemental cash flow data:
  Cash paid during the period for:
    Interest (net of amounts capitalized) . . . . .  $  7,447       $  9,922
    Income taxes. . . . . . . . . . . . . . . . . .  $  9,144       $ 13,318
  Non-cash investing activities financed
   through government grants. . . . . . . . . . . .  $  7,335       $ 20,295
  Non-cash settlement of deferred compensation
   liability financed through the issuance of
   restricted stock . . . . . . . . . . . . . . . .  $  1,216       $     --


           See notes to condensed consolidated financial statements.

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

1.  BASIS OF PRESENTATION

    The results of operations for the three and nine 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.

    Certain amounts in the 1997 financial statements have been reclassified
to conform with the 1998 presentation.

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      Nine Months Ended
                                     September 30,          September 30,
                                     1998       1997         1998      1997
                                    ------     ------       ------    ------
<S>                                 <C>        <C>         <C>        <C>
Numerator for basic and diluted
 earnings per share:
  Net Earnings. . . . . . . . . . . $ 7,688    $ 9,775     $34,820    $23,804
                                    =======    =======     =======    =======
Denominator:
  Denominator for basic earnings per
   share - weighted average shares.  31,198     31,121      31,170     31,115
  Effect of dilutive securities:
    Employee stock options and
     restricted stock . . . . . . .      97        337         249        129
                                    -------    -------     -------    -------
  Denominator for diluted earnings
   per share-adjusted weighted
   average shares . . . . . . . . .  31,295     31,458      31,419     31,244
                                    =======    =======     =======    =======
Basic earnings per share. . . . . . $  0.25    $  0.31     $  1.12    $  0.77
                                    =======    =======     =======    =======
Diluted earnings per share. . . . . $  0.25    $  0.31     $  1.11    $  0.76
                                    =======    =======     =======    =======
</TABLE>
3.  INVENTORIES

    Inventories consist of the following:
<TABLE>
<CAPTION>
                                      September 30,         December 31,
                                           1998                1997
                                         --------            ---------
    <S>                                  <C>                 <C>
    Raw materials. . . . . . . . . . .   $ 67,191            $ 50,669
    Finished and semi-finished goods .    105,744              90,210
    Supplies . . . . . . . . . . . . .     13,371              13,254
                                         --------            --------
                                         $186,306            $154,133
                                         ========            ========
</TABLE>
                                      7
<PAGE>
4.  ENVIRONMENTAL MATTERS

    The Company's operations are subject to extensive laws and regulations
governing air emissions, wastewater discharges and solid and hazardous waste
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 $10,000 and $24,600.  In connection
with these expenditures, the Company has accrued approximately $17,400 at
September 30, 1998 representing management's best estimate of probable non-
capital environmental expenditures.  In addition, future capital expenditures
aggregating approximately $8,500 to $26,900 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 $14,108 and $8,031 for the three
months ended September 30, 1998 and 1997, respectively, and $40,225 and
$16,265 for the nine months ended September 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

                                      8
<PAGE>
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
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.  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.  See "Outlook" below.

    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 (partially-oriented yarn) 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 United States 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;
the prices of competing materials, such as cotton, which can affect demand

                                      10
<PAGE>
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 SEPTEMBER 30, 1998 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1997

    Net sales for the three months ended September 30, 1998 decreased 10.4%
to $237.0 million from $264.7 million for the three months ended September
30, 1997.  This decrease was primarily the result of declines in worldwide
polyester fiber selling prices, as the crisis in the Far East continued to
exert intense price pressure on the worldwide markets, and the loss of sales
of Creative Forming, Inc. (CFI), which was sold in December 1997.  Sales for
the Fibers Group decreased 13.9% to $88.0 million in the 1998 period from
$102.3 million in the comparable 1997 period due primarily to a 9.3% decrease
in the average selling price per pound for polyester fiber in the 1998
period as compared to the 1997 period.  In addition, polyester fiber sales
volumes decreased 5.2% in the 1998 period as compared to the 1997 period.
Sales for the Recycled Products Group (RPG) decreased 11.6% to $81.7 million
in the 1998 period compared to $92.4 million in the year-ago period due
primarily to lower worldwide recycled polyester sales volumes, which
decreased 6.8% in the 1998 period as compared to the 1997 period; lower
polyester fiber average selling prices, which decreased 5.6% in the 1998
period as compared to the 1997 period; and decreased sales in other
divisions.  Sales for the Packaging Products Group (PPG) decreased 3.9% to
$67.4 million in the 1998 period from $70.1 million in the 1997 period
resulting from the divestiture of CFI, which had sales in the third quarter
of 1997 of $6.1 million.  This decrease offset higher PET resins sales
volumes, which increased 5.0% in the 1998 period as compared to the 1997
period, and relatively stable domestic PET resins average selling prices.

    Cost of sales for the three months ended September 30, 1998 decreased
9.4% to $205.3 million for the 1998 period from $226.6 for the comparable
1997 period.  This decrease was primarily the result of lower worldwide
chemical raw material costs.  Cost of sales for the PPG decreased 9.3% for
the 1998 period as compared to the 1997 period primarily due to lower




                                     11
<PAGE>
worldwide raw material costs and the divestiture of CFI.  Cost of sales for
the Fibers Group decreased 12.6% for the 1998 period as compared to the year-
ago period primarily due to lower raw material costs.  Cost of sales for the
RPG decreased 4.5% for the 1998 quarter compared to 1997 quarter as a result
of lower sales volumes which offset higher domestic raw material costs.

    As a result of the foregoing, gross profit for the three months ended
September 30, 1998 decreased 16.5% to $31.8 million for the 1998 period from
$38.0 for the comparable 1997 period.  The gross profit margin for the 1998
period was 13.4% compared to 14.4% for the 1997 period.

    Selling, general and administrative expense amounted to $17.7 million, or
7.5% of sales, for the 1998 period compared to $19.0 million, or 7.2% of
sales, for the 1997 period.  The decrease was due primarily to the
divestiture of CFI.

    As a result of the foregoing, operating income was $14.1 million for the
third quarter of 1998 compared to $19.0 million for the third quarter of
1997.

    Interest expense was $2.0 million for the 1998 period compared to $3.0
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 third quarter of 1998
compared to 39.0% in the comparable 1997 period.  The tax rate decreased
primarily as a result of 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
September 30, 1998 were $7.7 million, or $0.25 per diluted share, compared to
$9.8 million, or $0.31 per diluted share, for the three months ended
September 30, 1997.

NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1997

    Net sales for the nine months ended September 30, 1998 decreased 4.7% to
$761.4 million from $799.0 million for the nine months ended September 30,
1997.  This decrease was primarily the result of declines in worldwide
polyester fiber selling prices, as the crisis in the Far East continued to
exert intense price pressure on the worldwide markets, and the divestiture of
CFI.  Sales for the Fibers Group decreased 11.1% to $279.9 million for the
1998 period from $314.8 million for the comparable 1997 period primarily due
to the average selling price per pound for polyester fiber decreasing 7.3%
in the 1998 period as compared to the 1997 period.  In addition, polyester
fiber sales volumes decreased 4.1% in the 1998 period as compared to the 1997
period.  Sales for the RPG remained essentially unchanged at $284.5 million
in the 1998 period compared to $285.2 million in the year-ago period
primarily as a result of higher worldwide recycled polyester fiber sales
volumes, which increased 6.6% in the 1998 period as compared to the 1997
period, offsetting lower worldwide polyester fiber average selling
prices, which decreased 6.9% in the 1998 period as compared to the 1997
period.  Sales for the PPG decreased slightly in the 1998 period to $197.0
million from $199.1 million in the 1997 period due primarily to higher
domestic PET resins sales volumes being more than offset by the


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divestiture of CFI, which had sales of $17.1 million in the first nine months
of 1997, and decreased sales volumes at the Company's European resins
operation due to the restructuring in the second quarter of 1997 (see below).
Average selling prices for the PPG increased 5.5% in the 1998 period as
compared to the 1997 period and sales volumes increased 2.5% in the 1998
period as compared to the year-ago period.

    Cost of sales for the nine months ended September 30, 1998 decreased 5.2%
to $644.0 million from $680.6 million for the comparable 1997 period.  This
decrease was primarily the result of lower worldwide chemical raw material
costs.  Cost of sales for the PPG decreased 11.5% in the 1998 period compared
to the year-ago period due primarily to lower worldwide raw material costs,
lower plant operating costs and the divestiture of CFI.  Cost of sales for
the Fibers Group decreased 9.3% in the 1998 period as compared to the 1997
period due to lower raw material costs.  Cost of sales for the RPG increased
5.2% in the 1998 period as compared to the comparable 1997 period primarily
as a result of higher worldwide raw material costs.

    As a result of the foregoing, gross profit for the nine months ended
September 30, 1998 decreased slightly to $117.4 million from $118.4 million
for the comparable 1997 period.  The gross profit margin was 15.3% for the
1998 period compared to 14.8% for the 1997 period.

    Selling, general and administrative expense amounted to $55.9 million, or
7.3% of sales, for the 1998 period compared to $60.1 million, or 7.5% of
sales, for the 1997 period.  The decrease was due primarily to the
divestiture of CFI and reduced costs at the Company's European operations as
a result of the restructuring plan implemented in the second quarter of 1997
(see below).

    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 $61.4 million for the
first nine months of 1998 compared to $50.8 million, or $58.3 million
excluding the restructuring charge, for the comparable 1997 period.

    Interest expense was $6.6 million for the 1998 period compared to $10.2
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 nine months of 1998
versus 41.4% in the comparable 1997 period.  The rate decreased primarily as
a result of increased earnings at the Company's Irish recycled 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 nine months ended
September 30, 1998 were $34.8 million, or $1.11 per diluted share, compared
to $23.8 million, or $0.76 per diluted share for the nine months ended
September 30, 1997.  Excluding the restructuring charge, net earnings for the
1997 period were $28.2 million, or $0.90 per diluted share.
                                     13
<PAGE>
OUTLOOK

    The U.S. and European polyester fiber markets are being severely impacted
by the Far Eastern economic crisis and the resultant increase in imports of
fiber yarn, fabric and apparel from that region.  This has caused sluggish
demand, higher inventory levels and intense price competition for domestic
fiber producers.  In addition, increased competition among domestic
producers, resulting from recent expansions in U.S. polyester staple and POY
(partially-oriented yarn) capacity, have contributed to selling price
pressure.

    The Company continues to operate its production facilities and sell its
products at higher utilization rates than many of its competitors.  The
Company expects its worldwide fiber sales volumes to remain relatively stable
in the near term.  However, ongoing pressure on fiber selling prices will
continue to erode fiber profit margins.

    The PET resins market has experienced little effect to date from the Far
Eastern economic problems.  In the near term, increased competitive pressures
in the United States and Europe, combined with seasonal demand slowing, is
expected to adversely affect PET resins selling prices and profit margins.

    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
plans to perform previously delayed maintenance on various production lines
at other facilities over the next 15 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 remainder of 1998 and in 1999.

    In 1999, the Company's results of operations will also 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.  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 (see note 6 to the condensed consolidated financial statements).
In addition, start-up costs to be incurred and expensed in 1999 are estimated
to be less than $5 million.  As a result of the foregoing, net earnings from
continuing operations are expected to be adversely affected during 1999.

LIQUIDITY AND CAPITAL RESOURCES

    Net cash provided by operations was $65.3 million for the nine months
ended September 30, 1998 compared to $86.4 million for the nine months ended
September 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 $163.2 million in the
first nine months of 1998 compared to $139.1 million in the first nine months
of 1997.  Capital spending amounted to $163.2 in the 1998 period compared to
$144.1 million in the 1997 period reflecting the Company's ongoing capital
investment program.
                                     14
<PAGE>
    Net cash provided by financing activities amounted to $97.9 million in
the first nine months of 1998 compared to $61.0 million in the comparable
1997 period.  Net borrowings amounted to $105.2 million in the 1998 period
compared to $68.9 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 first nine months of 1998, directors
and officers acquired approximately 94,000 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 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
$150 and $190 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 September 30, 1998 include $265 million
under its $330 million revolving credit facility, unused short-term
uncommitted lines of credit aggregating approximately $139.8 million, and
internally generated funds.  The Company is considering other forms of
financing including the issuance of public securities.  On October 16, 1998,
the Company's shelf registration statement covering the issuance of up
to $400 million of debt and/or equity securities was declared effective by
the SEC.  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 November 10, 1998.  The Company has also entered into interest
rate swaps with an aggregate notional amount of $200 million at September 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 $42.1
million to terminate these agreements at September 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 September 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


                                     15
<PAGE>
entity.  At September 30, 1998, the Company would have had to pay
approximately $1.3 million to terminate these contracts.

    The Company has also entered into forward foreign currency contracts to
exchange U.S. dollars for German marks with an aggregate notional amount of
$2.7 million at September 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 October 1998
through March 1999.  At September 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 September 30,
1998, the notional amount of such contracts was $9.9 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
interface systems are vulnerable to those third parties' failure to remediate
their own Year 2000 issues.  The Company is currently preparing contingency
plans which will involve, among other actions, managing inventories and
adjusting staffing strategies.  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

                                     16
<PAGE>
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, Far Eastern 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.




























                                     17
<PAGE>
                             PART II - OTHER INFORMATION

ITEM 5.  OTHER INFORMATION

    Stockholders who intend to submit proposals at the 1999 Annual Meeting of
Stockholders, currently scheduled to be held on May 18, 1999, without
including such proposals in the Proxy Statement for such meeting must notify
the Company of this intention no later than April 18, 1999.

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

        4(b)  Second Amendment to Loan Agreement dated September 22, 1998 by
              and among the Company and Fleet National Bank, as agent, and
              certain other financial institutions

        27    Financial Data Schedule.

    (b)  Reports on Form 8-K.

              None.































                                      18
<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 November 6, 1998                         By /s/ Keith R. Phillips
      -------------                            ------------------------
                                               Keith R. Phillips
                                               Chief Financial Officer,
                                               Vice President and Treasurer
                                               (Principal Financial Officer)





Dated November 6, 1998                         By /s/ Mark J. Rosenblum
      -------------                            ------------------------
                                               Mark J. Rosenblum
                                               Chief Accounting Officer,
                                               Vice President and Controller
                                               (Principal Accounting Officer)





























                                      19
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