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, 1996

                                        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)

                                  (908) 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, 1996, there were 31,179,969 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, 1996 and 1995   3

        Condensed Consolidated Balance Sheets -
         September 30, 1996 and December 31, 1995 . . . . . . . . . . .    4

        Condensed Consolidated Statements of Stockholders' Equity . . .    5

        Condensed Consolidated Statements of Cash Flows -
         For the nine months ended September 30, 1996 and 1995. . . . .    6
             
        Notes to Condensed Consolidated Financial Statements. . . . . .7 - 8
   
   ITEM 2 - Management's Discussion and Analysis of
             Financial Condition and Results of Operations . . . . . . 9 - 14

PART II - OTHER INFORMATION

   ITEM 6 - Exhibits and Reports on Form 8-K . . . . . . . . . . . . .     15

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     16





























                                        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,
                                  ------------------      ------------------
                                    1996       1995         1996      1995
                                   ------     ------       ------    ------
<S>                              <C>         <C>          <C>       <C>
Net sales                        $265,383    $274,586     $850,233  $844,623

Cost of sales                     236,302     216,827      731,164   658,172
                                 --------    --------     --------  --------
Gross profit                       29,081      57,759      119,069   186,451

Selling, general and 
 administrative expenses           22,187      22,050       66,883    67,958
                                 --------    --------     --------  --------

Operating income                    6,894      35,709       52,186   118,493

Interest expense, net               3,791       2,687       10,793     8,462
Loss on sale of subsidiary           ---         ---          ---      5,500
                                 --------    --------     --------  --------
Earnings before income taxes        3,103      33,022       41,393   104,531

Income taxes                        5,933      11,888       20,790    39,062
                                 --------    --------     --------  --------

Net (loss) earnings              $ (2,830)   $ 21,134     $ 20,603  $ 65,469
                                 ========    ========     ========  ========

Net (loss) earnings per 
 common share                    $  (0.09)   $   0.63     $   0.62  $   1.94
                                 ========    ========     ========  ========

Weighted average common shares     32,354      33,680       33,275    33,700
                                 ========    ========     ========  ========
</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,
                                                     1996            1995
                                                  ----------      ------------
ASSETS
Current assets:
<S>                                               <C>              <C>
   Cash and cash equivalents                      $   19,708       $    3,893
   Accounts receivable, less allowance
     of $5,754 in 1996 and $5,335 in 1995            129,082          145,572
   Inventories                                       176,040          200,224
   Prepaid expenses and other current assets           1,792           14,614
                                                    --------       ----------
      Total current assets                           326,622          364,303
Property, plant and equipment, at cost:
   Land, buildings and improvements                  116,366          111,700
   Machinery and equipment                           735,402          664,494
                                                  ----------       ----------
                                                     851,768          776,194
   Less accumulated depreciation                     282,999          248,638
                                                  ----------       ----------
      Property, plant and equipment, net             568,769          527,556
Cost in excess of net assets acquired, net           287,849          295,062
Other assets, net                                     24,626           23,752
                                                  ----------       ----------
                                                  $1,207,866       $1,210,673
                                                  ==========       ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                               $   53,981       $   89,104
   Accrued liabilities                                48,565           50,368
   Line of credit with bank                              --             6,216
   Current portion of long-term debt                     147              147
                                                  ----------       ----------
      Total current liabilities                      102,693          145,835
Long-term debt                                       328,740          272,867
Deferred income taxes and other liabilities          147,418          141,625
                                                  ----------       ----------
      Total liabilities                              578,851          560,327
Stockholders' equity:
   Common stock, $.001 par value; 55,000,000 
    shares authorized, 33,609,440 shares
    issued at September 30, 1996,
    33,441,391 at December 31, 1995                       34               33
   Class B common stock, $.001 par value;
     5,500,000 shares authorized                          --               --
   Paid-in capital                                   233,643          230,008
   Foreign currency translation adjustments            7,261            6,849
   Retained earnings                                 426,466          413,456
                                                  ----------       ----------
                                                     667,404          650,346
   Less common stock in treasury at cost:
     1,870,150 shares at September 30, 1996           38,389             ---
                                                  ----------       ----------
       Total stockholders' equity                    629,015          650,346
                                                  ----------       ----------
                                                  $1,207,866       $1,210,673
                                                  ==========       ==========
</TABLE>
            See notes to condensed consolidated financial statements.
                                        4
<PAGE>

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


<CAPTION>
                                 COMMON STOCK
                                    ISSUED                   CURRENCY
                                ---------------   PAID-IN   TRANSLATION   RETAINED   TREASURY
                                SHARES   AMOUNT   CAPITAL   ADJUSTMENTS   EARNINGS     STOCK    TOTAL
                                ------   ------   -------   -----------   --------     -----   --------
<S>                             <C>        <C>    <C>          <C>       <C>       <C>        <C>
Balance at December 31, 1994    33,192     $ 33   $ 224,352    $ 4,783   $ 348,405   $  ---   $ 577,573
Net earnings                                                                74,054               74,054
Cash dividends ($0.27 per share)                                            (9,003)              (9,003)
Exercise of stock options           90                  846                                         846
Issuance of common stock to
   employee benefit plans          158                4,190                                       4,190
Issuance of restricted stock         1                   34                                          34
Tax effect of exercise of stock 
 options                                                586                                         586
Currency translation adjustments                                 2,066                            2,066
                                ------     ----   ---------    -------   ---------            ---------
Balance at December 31, 1995    33,441       33     230,008      6,849     413,456              650,346
                                ------     ----   ---------    -------   ---------            ---------

Net earnings                                                                20,603               20,603
Cash dividends ($0.23 per share)                                            (7,593)              (7,593)
Exercise of stock options           46                  857                                         857
Issuance of common stock to
 employee benefit plans            122        1       2,695                                       2,696
Tax effect of exercise of stock
 option                                                  83                                          83
Currency translation adjustments                                   412                              412
Purchase of treasury stock                                                          (38,389)    (38,389)
                                ------     ----    --------    --------   --------  -------   ---------
Balance at September 30, 1996   33,609     $ 34   $ 233,643    $ 7,261   $ 426,466 $(38,389)  $ 629,015
                                ======     ====    ========    ========   ========  =======   =========

</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, 1996 AND 1995
                                  (In thousands)

<CAPTION>
                                                          1996          1995
                                                         -----          ----
Cash flows from operating activities:
  <S>                                                   <C>           <C>
  Net earnings                                          $20,603       $65,469
  Adjustments to reconcile net earnings to net
   cash provided by operating activities:
     Depreciation                                        43,202        39,906
     Amortization                                         9,958         9,080
     Deferred income taxes                                5,627         7,539
     Common stock issued for stock plans                  2,669         3,657
     Loss on sale of subsidiary                             --          5,500
     Changes in assets and liabilities                   14,467       (29,891)
                                                        -------       -------

  Net cash provided by operating activities              96,526       101,260
                                                        -------       -------
Cash flows from investing activities:
  Additions to property, plant and equipment            (90,112)      (72,411)
  Other investing activities                              4,850        17,683
                                                        -------       -------

  Net cash used in investing activities                 (85,262)      (54,728)
                                                        -------       -------
Cash flows from financing activities:
  Net borrowings (repayments) of long-term debt          55,999       (32,464)
  Net decrease in line of credit with bank               (6,216)           --
  Dividends paid on common stock                         (7,593)       (6,659)
  Exercise of stock options                                 883           520
  Purchase of treasury stock                            (38,389)           --
                                                        -------       -------

  Net cash provided by (used in) financing 
   activities                                             4,684       (38,603)
                                                        -------       -------
Effect of exchange rate changes on cash
  and cash equivalents                                     (133)          209
                                                        -------       -------

Increase in cash and cash equivalents                    15,815         8,138
Cash and cash equivalents at beginning of period          3,893        21,556
                                                        -------       -------

Cash and cash equivalents at end of period              $19,708       $29,694
                                                        =======       =======

Supplemental cash flow data:
  Cash paid during the period for:
    Interest (net of amounts capitalized)               $ 8,857       $ 8,970
    Income taxes                                        $ 8,238       $28,341

</TABLE>

            See notes to condensed consolidated financial statements.




                                        6
<PAGE>
                                  WELLMAN, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                (Information for the three and nine months ended
                   September 30, 1996 and 1995 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.

2.  NET EARNINGS PER COMMON SHARE

        Net earnings per common share is based on the weighted average number 
    of common and common equivalent shares outstanding.

3.  INVENTORIES

        Inventories consist of the following:
<TABLE>
<CAPTION>
                                        September 30,       December 31,
                                            1996                1995
                                         ---------          ----------
    <S>                                  <C>                 <C>
    Raw materials                        $  77,369           $  85,318
    Finished and semi-finished goods        84,348             101,435
    Supplies                                14,323              13,471
                                         ---------           ---------
                                         $ 176,040           $ 200,224
                                         =========           =========
</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 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 $13,700 and
    $24,000.  In connection with these expenditures, the Company has accrued 
    an amount at September 30, 1996 within this range representing management's 
    best estimate of probable non-capital environmental expenditures.  In
    addition, future capital expenditures aggregating approximately $10,000 to 
    $34,000 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.
                                        7
<PAGE>
5.  STOCK REPURCHASE PROGRAM

        In June 1996, the Company announced its intention to repurchase up to 
    2.5 million shares of the Company's common stock in the open market.  As of 
    September 30, 1996, 1,870,150 shares had been repurchased.

















































                                         8
<PAGE>

                                 WELLMAN, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

    The primary business of Wellman, Inc. is the manufacture and marketing of 
high-quality polyester products, including Fortrel brand polyester textile 
fibers, polyester fibers made from recycled raw materials and PermaClear brand 
PET (polyethylene terephthalate) packaging resin.  Wellman has annual capacity 
to manufacture approximately 1.1 billion pounds of fiber and over 500 million 
pounds of resin worldwide at five major production facilities in the United 
States and Europe.  Wellman is also the world's largest plastics recycler, 
utilizing a significant amount of recycled raw materials in its manufacturing 
operations. 

    The Fibers Group produces Fortrel textile fibers, which represent 
approximately 60% of the Company's fiber production.  These fibers are used in 
apparel and home furnishings and produced from two chemical raw materials, 
purified terephthalic acid (PTA) and ethylene glycol (EG), which are purchased 
on the open market.  The other 40% of fiber production, primarily fiberfill and 
carpet fibers, is manufactured by the Recycled Products Group from recycled raw 
materials, including postconsumer PET soft drink bottles and producer fiber, 
resin and film wastes. The Company's PET resins, produced by the Packaging 
Products Group from PTA and EG, 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 and price.  It 
believes it is the second-largest polyester staple producer in the United 
States and the fourth-largest PET resin 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 by general economic 
conditions.  Global PET resin demand continues to grow, driven by new product 
applications for PET and conversion from other packaging materials to PET.

    Several factors significantly affect the Company's profitability: raw 
material margins, or 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 and aluminum, which can affect demand for 
its products; and economic and market conditions in the U.S. and other regions
of the world.  Prices of PTA and EG are a primary determinant of polyester 
fiber and PET resin selling prices.  Changes in PTA and EG prices are driven by
worldwide supply and demand.

    Raw material margins for the chemical-based fiber and PET resin businesses 
have generally been influenced by supply and demand factors.  Both fiber and 
resin margins experience short-term increases or decreases due to timing of 
price changes and market conditions.

                                       9
<PAGE>
    Raw material margins for the recycled fiber operation tend to be more 
variable than those for the chemical-based businesses, primarily because 
recycled raw material costs do not cause changes in fiber prices.  Recycled raw 
material costs are primarily dependent upon supply and demand for waste 
materials.

    The Company's sales are neither materially dependent upon a single customer 
nor seasonal in nature.  However, fiber sales in the second half of the year 
can be affected by changes in the traditional vacation periods of its 
customers.  Demand, prices and raw material costs for both products may also be
affected by global economic conditions, supply and demand balances, and export 
activity.  In this regard, the Far East remains the most influential region.

    By the year 2000, the Company plans to substantially increase its polyester 
fiber and PET resin production capacity through the expansion of existing 
facilities over the next few years and construction of a new, state-of-the-art 
production facility in Mississippi in 1999.  Most of the expansion will be in 
PET resin capacity.  As a result, the Company's production mix is expected to 
be approximately 50% fibers and 50% PET resins.

THREE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THE THREE MONTHS ENDED 
SEPTEMBER 30, 1995

    Net sales for the three months ended September 30, 1996 decreased 3.4% to 
$265.4 million from $274.6 million for the three months ended September 30, 
1995.  Sales for the Fibers Group declined to $117.5 million in the 1996 period 
from $121.0 million in the 1995 period due to lower polyester fiber selling 
prices which more than offset improved fiber demand. Sales for the Recycled 
Products Group (RPG) decreased to $76.3 million in the 1996 period from $104.1 
million in the year-ago period primarily due to a 12-week strike at the 
European recycled fibers operation, which kept the facility closed from mid-
July 1996 through the end of the period. In addition, the decline in the RPG's 
sales was a result of continued worldwide polyester fiber selling price 
declines and the disposition of certain businesses which had sales in the third
quarter of 1995 of $10.9 million.  Sales for the Packaging Products Group (PPG)
increased to $71.7 million in 1996 from $49.4 million in 1995 due to the 
December 31, 1995 acquisition of a Netherlands-based PET resins business and 
increased domestic sales volume.  Domestic and European PET resin selling 
prices have declined significantly since year-end 1995.

    Gross profit for the three months ended September 30, 1996 amounted to 
$29.1 million versus $57.8 million for the comparable 1995 period.  The gross 
profit margin for the 1996 period was 11.0% compared to 21.0% in the 1995 
period.  Gross profit for the Fibers Group decreased in the 1996 period 
compared to the 1995 period due to lower polyester fiber selling prices which 
more than offset lower chemical raw material costs. Gross profit for the RPG 
also decreased in the 1996 period versus 1995 primarily due to reduced profit 
at the European recycled fibers operation stemming from weak business 
conditions compounded by the strike.  This more than offset increased profits 
for the domestic recycled fibers business as a result of lower raw material 
costs.  Gross profit for the PPG decreased significantly in the 1996 period 
compared to the same period in the prior year due to large declines in PET 
resins selling prices without corresponding declines in raw material costs.  
The 1996 gross profit was also negatively impacted by the inventory charge 
described below.
                                       10
<PAGE>
    Selling, general and administrative expenses amounted to $22.2 million, or
8.4% of sales, for 1996 compared to $22.1 million, or 8.0% of sales, for 1995.

    As a result of the foregoing and the unusual charges described below, 
operating income was $6.9 million for the third quarter of 1996 versus $35.7 
million for the third quarter of 1995.

    Net interest expense was $3.8 million in 1996 compared to $2.7 million in 
1995.  Interest expense increased due to an increase in outstanding borrowings 
and a decrease in interest income.

    The effective income tax rate was 191.2% in the third quarter of 1996 
versus 36.0% in the comparable 1995 period.  See paragraph below regarding 
unusual charges for explanation of tax rate increase. 

    The Company incurred unusual inventory and tax expenses in the third 
quarter of 1996.  As a result of recent, large declines in raw material costs,
the Company recorded a charge of approximately $7.0 million to establish an 
inventory reserve, which lowered third quarter 1996 gross profit.  The Company 
also provided for an additional $4.4 million in income taxes to reflect a higher
than expected tax rate for the year.  This resulted from lower projected pretax
earnings, a significant portion of which were at the European recycled fiber 
operation, which is subject to significantly lower tax rates than the U.S. 
operations, and the European PET resin operation, which incurred a pretax loss 
which has no tax benefit.

    As a result of the foregoing, the Company reported a net loss for the three 
months ended September 30, 1996 of $2.8 million, or $0.09 per share, compared 
to net earnings of $21.1 million, or $0.63 per share, for the three months 
ended September 30, 1995.

NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1995 

    Net sales for the nine months ended September 30, 1996 increased slightly 
to $850.2 million from $844.6 million for the nine months ended September 30, 
1995.  Sales for the Fibers Group decreased to $345.8 million in the 1996 
period from $372.8 million in the 1995 period due to lower polyester fiber 
selling prices.  Sales for the RPG decreased to $276.7 million in the first 
nine months of 1996 from $365.1 million in the first nine months of 1995 due to
the 12-week strike at the European recycled fibers operation, which kept the 
facility closed from mid-July 1996 through the end of the period. In addition, 
the decline in the RPG's sales was a result of decreased polyester fiber 
selling prices for the domestic and European recycled fiber operations and the 
disposition of certain businesses which had sales in the first nine months of 
1995 of $41.2 million.  Sales for the PPG increased to $227.8 million in the 
first nine months of 1996 from $106.7 million in the year-ago period due to 
higher sales volumes resulting from the mid-1995 expansion of domestic PET 
resins capacity and the December 31, 1995 acquisition of a Netherlands-based 
PET resins business.  Domestic and European PET resin selling prices have 
declined significantly since year-end 1995.



                                       11
<PAGE>
    Gross profit for the nine months ended September 30, 1996 was $119.1 
million compared to $186.5 million for the 1995 period.  The gross profit 
margin for the 1996 period was 14.0% compared to 22.1% in the year-ago period. 
Gross profit for the Fibers Group decreased in the first nine months of 1996 
versus 1995 due to significantly lower polyester fiber selling prices and 
slightly higher production costs associated with weak textile demand in the 
first half of the year. Gross profit for the RPG also decreased in the first 
nine months of 1996 primarily due to reduced profit at the European recycled 
fibers operation stemming from weak business conditions compounded by the 
strike, and the discontinuance of gross profit from divested businesses. 
Despite higher sales volumes resulting from the aforementioned domestic 
PET resins expansion and the acquisition of a Netherlands-based PET resins 
business, gross profit for the PPG was flat in the first nine months of 1996 
compared to the year-ago period as profits were eroded by declining PET resins 
selling prices. The 1996 gross profit was also negatively impacted by the 
inventory charge described below.

    Selling, general and administrative expenses amounted to $66.9 million, or
7.9% of sales, for the 1996 period compared to $68.0 million, or 8.1% of sales,
for the 1995 period.

    As a result of the foregoing and the unusual charges described below, 
operating income was $52.2 million for the first nine months of 1996 versus 
$118.5 million for the comparable 1995 period. 

    Net interest expense was $10.8 million for the first nine months of 1996
compared to $8.5 million for the first nine months of 1995.  Interest expense 
increased due to an increase in outstanding borrowings and a decrease in 
interest income.

    The effective income tax rate was 50.2% in the first nine months of 1996 
versus 37.4% in the comparable 1995 period.  See paragraph below regarding 
unusual charges for explanation of tax rate increase.

    The Company incurred unusual inventory and tax expenses in the third 
quarter of 1996. As a result of recent, large declines in raw material costs, 
the Company recorded a charge of approximately $7.0 million to establish an 
inventory reserve, which lowered third quarter and nine months 1996 gross 
profit.  The Company also experienced a higher than expected tax rate for the 
year.  This resulted from lower projected pretax earnings, a significant 
portion of which were at the European recycled fiber operation, which is 
subject to significantly lower tax rates than the U.S. operations, and the 
European PET resin operation, which incurred a pretax loss which has no tax 
benefit.

    As a result of the foregoing, net earnings for the nine months ended 
September 30, 1996 were $20.6 million, or $0.62 per share, compared to $65.5 
million, or $1.94 per share, for the nine months ended September 30, 1995.  

OUTLOOK  

    Traditional seasonal demand weakness, as well as continued downward 
pressure on selling prices, is expected to affect the domestic fiber business 
in the fourth quarter.   The European fiber market remains weak, with continued 
pressure on selling prices. The Company's Irish fiber operation is expected to 
benefit from the restart of production due to the end of its recent strike.
                                       12
<PAGE>
    PET resin profits have deteriorated primarily due to significant declines 
in selling prices, reflecting competitive pressures, without corresponding 
declines in raw material costs.  Such conditions are expected to continue.  A 
previously-announced, 200 million pounds per year PET resin capacity expansion 
at the Company's Darlington, SC plant is expected to be completed in the first 
quarter of 1997. The Company remains committed to its growth strategy, 
including the aforementioned domestic resins expansion and the construction of 
a new facility located in Mississippi (see below).

LIQUIDITY AND CAPITAL RESOURCES

    The Company generated cash from operations of $96.5 million for the nine
months ended September 30, 1996 compared to $101.3 million for the nine months 
ended September 30, 1995.  The decrease in cash from operations was primarily 
the result of significantly lower net earnings.

    Net cash used in investing activities totaled $85.3 million in 1996 
compared to $54.7 million in 1995.  This increase was primarily the result of 
additions to property, plant and equipment, due to the Company's long-term 
capital investment program (see below), which totaled $90.1 million in 1996 
compared to $72.4 million in 1995.

    Net cash provided by financing activities totaled $4.7 million for 1996.  
In 1995, net cash used in financing activities totaled $38.6 million.  Net 
borrowings of long-term debt and bank line of credit totaled $49.8 million in 
1996 compared to repayments of $32.5 million in 1995. In addition, the Company 
initiated the purchase of treasury stock in 1996 totaling $38.4 million at 
September 30, 1996.

    The Company is currently engaged in a long-term capital investment program 
to expand the capacity of its business and estimates that capital expenditures 
could aggregate approximately $500 million over the five-year period from 1996 
through 2000.  The capital program includes a domestic PET resins capacity 
expansion expected to be completed in the first quarter of 1997 and 
construction of a new domestic polyester production facility expected to cost 
approximately $400 million and to be operational in phases beginning in late 
1998.  Internally generated funds, the current bank facility described below, 
and other credit arrangements are expected to fund the construction. 

    The Company's long-term capital investment program includes approximately 
$120 million in planned expenditures in 1996.  The exact amount and timing of 
the capital spending is difficult to predict since certain projects may extend 
into 1997 or beyond depending upon equipment delivery and construction 
schedules.  Significant 1996 capital expenditures include the aforementioned 
expansion of domestic PET resins production capacity and design and 
construction of the new domestic polyester production facility.

    The Company initiated a plan during the second quarter of 1996 to 
repurchase up to 2.5 million shares of its common stock in the open market.  At
September 30, 1996, 1,870,150 shares had been repurchased.  The stock purchases
are being financed from available cash and borrowings.



                                       13
<PAGE>
    The Company's financing agreements contain normal financial and restrictive 
covenants.  The Company believes that the financial resources available to it, 
including $235.0 million available at September 30, 1996 under its $330 million 
revolving credit facility, unused short-term uncommitted lines of credit 
aggregating $116.1 million, internally generated funds, and other credit 
arrangements will be sufficient to meet its foreseeable working capital, 
capital expenditures, stock repurchases and dividend payment requirements. 

    The Company has entered into forward interest rate swaps to reduce (hedge) 
the impact of interest rate changes for variable rate borrowings associated 
with planned capital expenditures over the next five years.  The agreements 
include an aggregate notional amount of $200 million at September 30, 1996, 
forward starting dates ranging from June 1997 to May 1998 and maturity dates of
at least 5 years thereafter.  The Company will pay fixed rates of interest 
ranging from 6.10% to 6.20%.  At September 30, 1996, the Company estimates it 
would have had a $2.8 million aggregate benefit if it had terminated these 
agreements.

    In conjunction with the aforementioned European acquisition, the Company
entered into forward foreign currency contracts to exchange Dutch guilders
for U.S. dollars with an aggregate notional amount of $56.7 million at
September 30, 1996 in order to reduce the related impact of foreign currency
translation adjustments.  The Company has designated these contracts as a
hedge of a net investment in a foreign entity.  The Company intends to renew
these contracts on a continuous basis.  At September 30, 1996, the fair value
of the contracts (determined through readily available dealer quotes)
approximated their carrying amount.

    The Company utilizes forward foreign currency contracts to hedge certain of 
its accounts receivable, accounts payable, and firm purchase commitments 
denominated in other foreign currencies.  At September 30, 1996, the Company 
estimates it would have had to pay approximately $1 million to terminate these 
agreements.


FORWARD LOOKING STATEMENTS

    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.  The Company cautions that a 
number of important factors could cause actual results for 1996 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, U.S. 
and global economic conditions, prices of competing products, such as cotton 
and aluminum, 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.



                                        14
<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

    (a)  Exhibits.

        27    Financial Data Schedule.

    (b)  Reports on Form 8-K.

              None. 














































                                        15
<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 12, 1996                       By /s/ Keith R. Phillips      
     -----------------                        ------------------------
                                              Keith R. Phillips
                                              Vice President, Chief Financial
                                              Officer and Treasurer (Principal
                                              Financial Officer)

 



Dated November 12, 1996                       By /s/ Mark J. Rosenblum
      ---------------                         ------------------------
                                              Mark J. Rosenblum
                                              Chief Accounting Officer,
                                              Controller and Vice President
                                              (Principal Accounting Officer)























                                        16
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