Displaying items by tag: Clearwater Paper

Clearwater Paper Corporation (NYSE:CLW) has just announced plans to build a new tissue machine and related converting equipment for producing premium and ultra-premium grades of private label tissue products at a site adjacent to the company's existing facility in Shelby, North Carolina.

ClearwaterPaper logo01"Clearwater Paper's customers are requiring more premium and ultra-premium products, which we are addressing with the new capacity. These high growth segments have increased 3.5 times faster than the overall tissue market, and we are committed to growing with our strategic customers and positioning ourselves to add new customers," said Linda K. Massman, president and CEO. "We believe this new capacity will reinforce our leadership in the private label tissue business and will be a significant driver of operating earnings growth while strengthening the quality of our manufacturing assets."

After an extensive analysis of the anticipated market growth, costs and financial returns of a new paper machine, the company will install a 200-inch Valmet NTT tissue machine and related converting equipment. The new tissue machine will produce a variety of high-quality private label premium and ultra-premium bath, paper towel and napkin products. At full production capacity, the new tissue machine is expected to produce approximately 70,000 tons of tissue products annually.

The estimated cost for the project includes approximately $283 million for the tissue machine, converting equipment and buildings, and approximately $57 million for the purchase and expansion of an existing warehouse that will consolidate all southeastern warehousing in Shelby. Clearwater Paper projects that the construction of the new facility will be completed in early 2019 and fully operational in 2020. Assuming the paper machine is fully sold out, it is expected to contribute an incremental $55 to $65 million of EBITDA based on $38 to $48 million of estimated operating income and approximately $17 million of estimated depreciation. The expected internal rate of return (IRR) for this project is 11 percent.

"Companies like Clearwater Paper know that North Carolina is a wonderful place to do business thanks to our skilled workforce, strong infrastructure and prime location," said North Carolina Governor Roy Cooper. "We want companies looking to expand to come to North Carolina because there's no better place to invest and grow."

"We expect the new tissue facility will be built on time and within budget, consistent with our first Shelby facility that was announced in June 2010 and commenced operations in late 2012. Our experience in Shelby, North Carolina, has been exceptional and we continue to enjoy the region's outstanding transportation infrastructure, business-friendly community, and overall quality of life," said Pat Burke, group president. "For those same reasons and a competitive incentive program from the City of Shelby, Cleveland County and the State of North Carolina, we are pleased to announce the company's newest state-of-the-art tissue machine will be built in Shelby."

The company expects to fund the project with cash flow from operations and its revolving line of credit. It is expected that capital will be deployed over the next 30 months with approximately one-third deployed in 2017, approximately two thirds in 2018 and any remaining amount in 2019.

Clearwater Paper intends to start construction during the second quarter of this year. Converting and warehouse operations are expected to be completed during the second half of 2018, and the tissue machine is expected to be completed during the first quarter of 2019.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.

Source: Clearwater Paper Corporation

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Tuesday, 20 December 2016 09:06

Clearwater Paper Acquires Manchester Industries

Clearwater Paper Corporation (NYSE:CLW) have just announced it has acquired Manchester Industries of Richmond, Virginia, a leading, independently-owned paperboard sales, sheeting and distribution supplier to the packaging and commercial print industries.

ClearwaterPaper logo01Clearwater Paper has acquired Manchester Industries in a cash transaction from PaperWorks Industries, an integrated full-service packaging provider for a purchase price of $68.25 million. With approximately 170 full-time employees, Manchester Industries operates five facilities located in Richmond, Virginia; Wilkes-Barre, Pennsylvania; Hagerstown, Indiana; Dallas, Texas and Mendon, Michigan. Clearwater Paper believes the acquisition will be immediately accretive.

"Manchester Industries offers an excellent range of converting services that include custom sheeting, slitting, and cutting," said Linda Massman, president and CEO of Clearwater Paper. "These five plants are expected to be a valuable asset for Clearwater Paper as we look to extend our reach and service platform to the small and mid-sized folding carton plants. On behalf of Clearwater Paper, we welcome Manchester Industries employees to our team."

FBR Capital Markets & Co., led by Matthew Spain, advised Clearwater Paper on the acquisition. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.

ABOUT PAPERWORKS INDUSTRIES, INC.

Founded in 2008, PaperWorks Industries, Inc. (PWI) is a leading, integrated North American full-service packaging provider of recycled paperboard and specialized folding cartons. The company is committed to the highest sustainable forestry and procurement standards. Product certifications include the Forest Stewardship Council, Sustainable Forestry Initiative and the Programme for the Endorsement of Forestry Certification. For more information: www.paperwrks.com.

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Clearwater Paper Corporation (NYSE:CLW) has just announced the permanent closure of its Oklahoma City converting facility and permanent shutdown of two tissue machines at the company's Neenah, Wisconsin, tissue facility.

ClearwaterPaper logo01"As an integral step in our overall strategy to optimize our operations through better asset utilization, we will be taking these difficult but necessary actions while delivering on our growth objectives," said Pat Burke, group president for Clearwater Paper.

Clearwater Paper intends to run its Oklahoma City facility until its permanent closure on March 31, 2017. All of the facility's 131 employees will be impacted. The facility converts large parent rolls of tissue into packaged products.

"Because of significant productivity gains from our cost and optimization programs across the company, we expect Oklahoma City's production to be effectively absorbed and more efficiently supplied by other Clearwater Paper facilities," said Glenn Taylor, vice president of manufacturing for Clearwater Paper's consumer products division.

Also, as part of an overall facility optimization and restructuring plan, Clearwater Paper's Neenah location will permanently shut down two of the company's highest-cost tissue machines, affecting approximately 85 of the facility's approximate 400 employees and removing a total production capacity of 32,000 tons beginning December 31, 2016. Three remaining tissue machines will continue to manufacture an array of private label and away-from-home tissue products.

"Although a difficult decision when considering the impacted employees at Neenah, we expect the plant's restructuring to lower our overall costs and significantly strengthen the facility," said Taylor.

The company will work closely with state employment agencies to assist employees in receiving training, educational benefits and other benefits that enable them to find new employment as quickly as possible. The company will also provide private career assistance services to help employees through this difficult time.

The company expects the total impact of non-recurring exit related costs to be approximately $13 to $16 million, $4 to $6 million of which is expected to be incurred this year with the remainder in 2017. The cost savings benefits resulting from the facility consolidation and optimization are expected to be $10 million on an annual basis, with $7 to $9 million in 2017, which will contribute to the company meeting its previously announced operational improvement target.

"Clearwater Paper's employees remain our primary consideration and we are working to do as much as we can for those affected by utilizing all resources to help them through this difficult time," said Pat Burke. "We are working with local and state agencies to supply multiple job options to the employees."

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.

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Monday, 04 April 2016 09:14

Clearwater Paper Adds Two New Board Members

Clearwater Paper Corporation (NYSE:CLW) have just announced that John P. O’Donnell and Alexander Toeldte have been appointed to the company’s board of directors, effective immediately.

“Their proven leadership abilities and experience as well as their knowledge of the paper industry will be invaluable as we continue to build on Clearwater Paper’s successful track record.”

ClearwaterPaper logo01“We are excited to welcome John and Alex to our board and look forward to their perspectives and contributions,” said Boh A. Dickey, chairman of the board. “Their proven leadership abilities and experience as well as their knowledge of the paper industry will be invaluable as we continue to build on Clearwater Paper’s successful track record.”

Mr. O’Donnell currently serves as the president and chief executive officer and a director of Neenah Paper, Inc. (NYSE:NP), a global specialty materials company. Prior to this, he served as Neenah Paper’s senior vice president, chief operating officer, and as president of the fine paper business. Mr. O’Donnell was employed by Georgia-Pacific Corporation for more than 20 years, serving in various capacities, including president of the North American commercial tissue business.

Mr. Toeldte is currently an operating director at Paine & Partners, LLC, a private equity firm. Prior to this, he served as the president, chief executive officer and a director of Boise Inc., and as an executive vice president at Boise Cascade LLC. Mr. Toeldte also served as an executive vice president of Fonterra Co-operative Group, chief executive of Fonterra Enterprises, and chief executive officer of Fletcher Challenge Building and Fletcher Challenge Paper. In addition, Mr. Toeldte served as chairman of the board of directors of the American Forest & Paper Association in 2012, and was a partner at McKinsey & Company, and served as head of its pulp and paper practice. Currently he serves as a director of Xerium Technologies, Inc. (NYSE:XRM), a global provider of industrial consumable products and services.

Mr. O’Donnell has been appointed to the class of directors whose term of office will expire at the 2017 annual meeting, when it is expected he will be nominated for election to a three-year term. Mr. Toeldte has been appointed to the class of directors whose term of office will expire at the 2018 annual meeting, when it is expected he will be nominated for election to a three-year term. With these additions, Clearwater Paper’s board now consists of nine directors, eight of whom meet New York Stock Exchange standards for independence.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing locations across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper’s employees build shareholder value by developing strong customer relationships through quality and service.

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Clearwater Paper Corporation today announced that it will begin construction of its continuous pulp digester project at the company’s Lewiston, Idaho, mill.

“We are pleased to be able to utilize a tool in Nez Perce County that can help strengthen and grow their business and assist the Lewiston facility in remaining competitive for years to come”

clearwater border logoConstruction of the project is slated to begin in October 2015 and expected to be completed in September 2017. Benefits from the project include significant reduction in air emissions, improved pulp quality and production, and more efficient utilization of wood chips (i.e. more pulp from the wood fiber Clearwater Paper uses).

“After many months of detailed review and reaching a multitude of milestones, the project is now a reality,” said Jay Backus, Clearwater Paper’s vice president of mill operations in Lewiston. “Getting to this launch point was no simple task, and there is a long list of individuals and agencies that deserve credit.”

Three key goals enabled construction to begin. First, was the authorization by the Nez Perce County commissioners of a partial tax exemption that paved the way for successful authorization and siting of the project in Lewiston. Second, was moving forward with a thorough engineering plan that validated the project’s operational goals and the return on investment. Lastly, was obtaining a permit from the Idaho Department of Environmental Quality.

The Nez Perce County Commissioners believe Clearwater Paper is a very important part of our local and regional economy. “We are pleased to be able to utilize a tool in Nez Perce County that can help strengthen and grow their business and assist the Lewiston facility in remaining competitive for years to come,” said Chairman Doug Havens.

“The leaders and citizens of Nez Perce County and our exceptional employees made it clear that this is the right place for our next major project,” said Linda Massman, president and CEO. “On behalf of everyone at Clearwater Paper, we thank you for the support and for making the Lewis-Clark Valley such a great place to do business.”

“Clearwater Paper thanks the Nez Perce County Commissioners, Doug Havens, Bob Tippett and Doug Zenner, for approving the partial tax exemption that cemented the decision to build the project in the County,” said Matt Van Vleet, vice president of public affairs. “We also thank the business leaders of Valley Vision, who were instrumental in helping support the company’s final decision to build the project in Lewiston.”

“This project is a win-win for Lewis-Clark Valley residents by helping Clearwater Paper, the area’s largest employer, to remain competitive and committed to the region,” said Doug Mattoon, executive director of Valley Vision.

During construction and start-up, the project will require hundreds of contract workers from around the globe, lodging and dining in the region for more than two years. Due to increased wood purchasing, the project is also expected to require additional need for loggers and other related contractors.

“A special thanks goes out to Idaho Director of Commerce Jeff Sayer for his assistance in the process and for recognizing the value the project would bring to Nez Perce County and the State of Idaho as a whole,” added Van Vleet.

“We also want to thank the people and business community of Lewiston, Clarkston and Nez Perce County for all the support they have given us in making this important mill upgrade a reality,” said Backus. “The Lewiston and Clarkston community has been supportive and instrumental in our being able bring this major mill improvement project to Lewiston allowing Clearwater Paper to increase our competitiveness in the global marketplace and renew our commitment to the Valley.”

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper’s employees build shareholder value by developing strong customer partnerships through quality and service.

For additional information on Clearwater Paper, please visit the company’s website at www.clearwaterpaper.com.

Contacts

Clearwater Paper Corporation
Matt Van Vleet, 509-344-5912

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clearwater border logoClearwater Paper Corporation (NYSE:CLW) has announced that it priced $300 million aggregate principal amount of senior notes due 2025 (the "Notes"). The Notes will have an interest rate of 5.375% per annum and are being issued at a price equal to 100% of their face value.

The company estimates that the net proceeds from the offering will be approximately $296 million after deducting discounts and estimated offering expenses. Clearwater Paper intends to use the net proceeds along with Company funds and funds drawn from its revolving credit facility to redeem all of its outstanding 7.125% Senior Notes due 2018.

As the offering was a private placement, the notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 (the "Securities Act") and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes that were offered have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

Source: Clearwater Paper Corporation

Published in Financial News

Following a comprehensive analysis, Clearwater Paper Corporation (NYSE:CLW) has announced the planned permanent closure of its Thomaston, Ga., tissue converting and distribution facility. The gradual shutdown of converting equipment will occur on a schedule throughout the year, with some operations running into the first quarter of 2014, affecting a total of 150 employees.

"This has been a difficult decision—one where the company reviewed many scenarios and alternatives to closing the plant," said Tom Colgrove, president of Clearwater Paper's consumer products division. "We have concluded that consolidating regional converting and permanently closingThomaston was the solution to best serve the needs of our southeastern customers and improve the overall logistics of our national manufacturing network."

Displaced Thomaston employees will be given an opportunity to apply for open positions at other Clearwater Paper facilities. In addition, the company is offering separation and incentive pay for employees who remain at Thomaston until their established final day of work. Also, the company is working closely with West Central Georgia Private Industries Council and the Economic Development Division at the Southern Crescent Technical College to assist with career transition services where needed. Clearwater Paper will integrate most of the equipment from Thomaston in its facilities atOklahoma City and Shelby, N.C.

"Our goal is to provide jobs where possible to our valued employees who are willing to relocate," said Colgrove. "Where the company cannot do that,Clearwater Paper wants to ensure we are doing as much as we can to help affected employees through this difficult transition."

The company expects the total impact of non-recurring exit-related costs to be approximately $6-$7 million of which approximately $4-5 million will be incurred in 2013. The cost savings benefits resulting from the equipment relocation and converting facility optimization, which are part of the company's previously announced cost savings programs, are expected to be fully realized beginning in the fourth quarter of 2014.

Source: Clearwater Paper Corporation

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clearClearwater Paper Corp.has announced that it entered into an accelerated stock buyback agreement ("ASB agreement") with Goldman, Sachs & Co. to repurchase an aggregate of $50 million of Clearwater Paper common stock. The company will acquire the common shares pursuant to the ASB agreement as part of its $100 million stock repurchase program. This program, which was announced on January 17, 2013, in conjunction with the sale of $275 million of 4.5% senior notes by the company, is targeted to be completed in 2013. The remainder of the repurchases under this program may be made, at management's discretion, in both public market and private transactions, are subject to certain limitations, and may include the use of derivative contracts or additional structured share repurchase agreements.

Under the ASB agreement, the company will pay $50 million to Goldman, Sachs & Co. and will receive a majority of the shares underlying the ASB agreement, from Goldman, Sachs & Co. on March 6, 2013. The remaining shares to be repurchased under the ASB agreement, if any, will be based generally on the daily volume-weighted average price of Clearwater Paper common stock during the term of the ASB agreement.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the aggregate dollar value of shares authorized to be repurchased pursuant to the stock repurchase program, the execution period for the stock repurchase program, and the manner in which stock repurchases may be conducted. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the company's ability to generate cash; fluctuations and volatility in the company's stock price; the company's execution of, and realization of the benefits from, its TAD tissue expansion strategy; market acceptance of and competitive pricing pressure for the company's products; increased market supply of TAD tissue products; changes in transportation costs and disruptions in transportation services; changes in raw material, maintenance and energy costs; changes in the cost and availability of wood fiber and wood pulp; loss of a large customer; customers' product preferences; changes in the United States and international economies; changes in expenses and required contributions associated with the company's pension plans; cyclical industry conditions; changes in the Alternative Fuel Mixture Tax Credit or Cellulosic Biofuel Producer Credit regulations and the company's eligibility for such tax credits; environmental liabilities or expenditures; unanticipated manufacturing disruptions; changes in general and industry-specific laws and regulations; labor disruptions; and other risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements.

Clearwater Paper Corporation

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On schedule, December 13, 2012 Clearwater Paper’s new Metso-supplied Advantage THRU-AIR (TAD) tissue machine was successfully started up and produced its first ton of paper in Shelby, North Carolina, USA. The completion of the flagship facility in Shelby fulfills one of Clearwater Paper’s primary business strategies – to focus on growing the consumer segment of the company.

“Metso TAD technology coupled with their strong project team and process integration capabilities were integral to the success of this project,” said Brian Hoaglund, Clearwater Paper’s expansion project leader. “Metso was a solid partner in delivering equipment that met our performance requirements and will allow Clearwater Paper to deliver ultra quality tissue products to our customers.”

“We are very impressed by Clearwater Paper’s determination and dedication of building a first class tissue manufacturing facility in Shelby. It has been a pleasure for the Metso team to work with them during the definition and execution phase in a well integrated delivery team. The result paid off with an excellent start-up,” said Soren Eriksson, Account Sales Manager, Metso.

Metso’s delivery comprised a complete production line with stock preparation equipment and an Advantage THRU-AIR 200 TAD machine including a Metso Yankee cylinder, THRU-AIR dryers, and an Advantage WetDust dust management system. The delivery also comprised an extensive automation package including Metso DNA machine and process controls and a Metso IQ quality control system with Metso IQ Scanners and Metso IQ Profilers.

The new production line will produce 70,000 tons a year of Ultra Premium high-quality tissue grades. The raw material for the new line will be virgin pulp.

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the U.S. and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass merchants and discount stores. The company also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's employees build shareholder value by developing strong customer relationships through quality and service.

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stock 1Clearwater Paper Corporation (NYSE:CLW) has announced that it upsized and priced 275 million aggregate principal amount of senior notes due 2023 (the "Notes"). The Notes will have an interest rate of 4.5% per annum and are being issued at a price equal to 100% of their face value.

The company estimates that the net proceeds from the offering will be approximately $270.7 million after deducting discounts and estimated offering expenses. Clearwater Paper intends to use approximately $163.9 million of the net proceeds to redeem all of its outstanding 10.625% Senior Notes due 2016, and to use $100 million of the net proceeds to purchase shares of the company's common stock pursuant to the company's previously announced $100 million stock repurchase program. The company intends to use the remaining net proceeds for general corporate purposes.

As the offering was a private placement, the notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 (the "Securities Act") and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes that were offered have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

Source: Clearwater Paper Corporation

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