Pulp-Paperworld.com / N.American News
Monday, 04 December 2017 18:45

Clearwater Paper Announces New Board Chair

Clearwater Paper Corporation (NYSE:CLW) has just announced that Beth Ford has been appointed as chair to the company's board of directors effective January 1, 2018.

ClearwaterPaper logo01Ms. Ford, the chief operating officer for Land O'Lakes Businesses, has served on the Clearwater Paper board of directors since 2013. As chief operating officer, Ms. Ford oversees Land O'Lakes' multi-billion dollar U.S. businesses, which include Purina Animal Nutrition, Land O'Lakes Dairy, and Winfield United, which provides crop inputs and agriculture technology solutions. In her 30 years in business, Ms. Ford has held senior and line leadership positions in seven companies across six industries, including roles at International Flavors and Fragrances, Mobil Corporation, PepsiCo and Pepsi Bottling Company, and Hachette Book Group and Scholastic, Inc.

"We greatly value the retail, supply chain, and operations insight Beth brings to us, which will help us improve our competitive position and succeed in the marketplace," said Linda Massman, president and CEO. "On behalf of the Clearwater Paper team, we extend our congratulations to Beth as our new board chair."

Ms. Ford will succeed Boh Dickey as chair. Mr. Dickey has been a Clearwater Paper board member since 2008 and chair since 2013. He is expected to retire from the company's board at the end of his current board term in May 2018 pursuant to the company's corporate governance guidelines.

"Boh has been a driving force in developing and guiding our strategy, positioning Clearwater Paper as one of the largest private label tissue manufacturers and an efficient paperboard manufacturer, serving our customers well over the years," added Massman. "I thank him for his numerous contributions and critical decisions that have helped make our company more successful."

With today's announcement, Clearwater Paper will be one of the few publicly-traded companies in the U.S. with women serving as the CEO and non-executive board chair.

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 - http://www.clearwaterpaper.com/

Published in North American News

Clearwater Paper Corporation (NYSE:CLW) has just released the company's latest corporate social responsibility (CSR) report, building on a history of sustainable commitment to our customers, employees, communities and the environment. The report shares data from the past two years, providing a comprehensive update on the company's performance on environmental, social and governance topics that matter most to Clearwater Paper stakeholders involved with or impacted by our company.

ClearwaterPaper logo01"At Clearwater Paper, we look at sustainability as a continuous improvement journey that reflects our strong commitment to being part of the solution in a changing and challenging world," said Linda Massman, president and CEO. "As such, we are pleased to present this CSR report, which was developed using current Global Reporting Initiative (GRI) G4 guidelines."

Highlights from the report include:

  • 68 percent reduction in waste to landfill since 2012
  • 10 percent reduction in water usage since 2012
  • 23 percent reduction in volatile organic compounds (VOCs) since 2012
  • 9 percent reduction in recordable safety incidents since 2012

This latest report is the company's first using GRI principles and policies. GRI helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as climate change, human rights, governance and social well-being. This enables real action to create social, environmental and economic benefits for everyone. The GRI Sustainability Reporting Standards are developed with true multi-stakeholder contributions and rooted in the public interest. https://www.globalreporting.org.

The report can be found at http://www.clearwaterpaper.com/environmental-performance/csr.

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

Published in European News

Clearwater Paper Corporation has reported financial results for the second quarter of 2015.

ClearwaterPaper logo01The company reported net sales of $444.6 million for the second quarter of 2015, down 10.9% compared to net sales of $498.8 million for the second quarter of 2014 primarily due to the sale of the company's specialty mills in December 2014. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2015 were $15.6 million, or $0.81 per diluted share, compared to $12.5 million, or $0.61 per diluted share, for the second quarter of 2014. The 2015 second quarter GAAP net earnings included $1.0 million of after-tax benefit associated with the mark-to-market impact of directors' equity-based compensation, $0.9 million of net after-tax gain associated with the settlement of a working capital escrow account established in connection with the sale of the company's specialty mills, and $0.5 million of after-tax expense associated with the closure of the company's Long Island, New York, converting and distribution facility. Excluding those items, second quarter 2015 adjusted net earnings were $14.2 million, or $0.74 per diluted share, compared to second quarter 2014 adjusted net earnings of $15.3 million, or $0.74 per diluted share.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $52.7 million for the second quarter of 2015. Adjusted EBITDA for the quarter was $50.7 million, down 11.6% compared to second quarter 2014 Adjusted EBITDA of $57.3 million. The decrease in EBITDA and Adjusted EBITDA was due primarily to costs associated with scheduled major maintenance at the company's Arkansas pulp and paperboard mill and the sale of the company's specialty tissue mills, partially offset by lower input costs for pulp, chemicals and natural gas.

"Clearwater Paper delivered strong results that exceeded the high end of our outlook for the second quarter of 2015," said Linda K. Massman, president and chief executive officer. "Our consumer products business has continued to demonstrate the ability to increase operating leverage, execute on its plan to improve efficiencies throughout the organization and expand its customer base. During the first half of the year, pulp and paperboard successfully completed major maintenance at both facilities within budget and brought these operations to a higher performance level, in addition to reaching record paperboard shipments in the second quarter."

Through July 29, 2015, the company has repurchased approximately 600,000 shares at an average price of $61.97 under the $100 million stock repurchase program authorized in December 2014.

SECOND QUARTER 2015 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment were $239.4 million for the second quarter of 2015, down 20% compared to second quarter 2014 net sales of $299.1 million. This decrease was due to the sale of the specialty tissue mills.

On a GAAP basis, the segment had operating income of $17.0 million, compared to operating income of $12.7 million in the second quarter of 2014. Adjusted operating income of $16.4 million for the second quarter of 2015 was up $1.5 million compared to the same period in 2014, after adjusting for $0.7 million and $2.2 million of costs in the second quarters of 2015 and 2014, respectively, related to previously announced facility closures. Also included in adjusted operating income for the second quarter of 2015 was the recognition of a $1.3 million net gain due to the settlement of the working capital escrow account associated with the sale of the specialty tissue mills. The improved results in the most recent period were driven primarily by a richer product mix, lower pricing for external pulp and increased usage of internally produced pulp, reduced energy costs, and lower planned maintenance expense, partially offset by the absence of operating income from the company's former specialty mills.

  • Total tissue sales volumes of 96,220 tons in the second quarter of 2015 declined by 28.6% and converted product cases shipped were 13.1 million, down 6.9%, each compared to the second quarter of 2014, largely due to the sale of the specialty mills.
  • Average tissue net selling prices increased 12.0% to $2,482 per ton in the second quarter of 2015, compared to the second quarter of 2014, due to improved product mix after the sale of the specialty mills.

Pulp and Paperboard

Net sales in the Pulp and Paperboard segment were $205.2 million for the second quarter of 2015, up 2.8% compared to second quarter 2014 net sales of $199.6 million. The increase was primarily due to stronger seasonal shipments. Operating income for the quarter decreased $5.9 million to $27.8 million, compared to $33.6 million for the second quarter of 2014, primarily due to approximately $7 million of scheduled major maintenance costs at the Arkansas pulp and paperboard mill, weaker pricing, and higher volumes of purchased pulp due to the major maintenance outage in Arkansas. These factors were partially offset by lower polyethylene prices and reduced chemical usage due to capital improvements at the Arkansas recovery boiler, lower natural gas prices and slightly lower transportation costs.

  • Paperboard sales volumes increased 4.6% to a record 204,983 tons in the second quarter of 2015, compared to 195,924 tons in the second quarter of 2014.
  • Paperboard net selling prices decreased 2.0% to $997 per ton compared to the second quarter of 2014 as a result of a product mix shift toward non-extruded products and quality related rebates that were limited in volume and scope.

Taxes

The company's GAAP tax rate for the second quarter of 2015 was a provision of 35.8% compared to 44.4% in the second quarter of 2014. The higher rate in 2014 was a result of the net impact of changes related to amendments to state tax returns and state tax rate changes. On an adjusted basis, the second quarter 2015 tax rate was 36.2%. The company expects its annual GAAP and adjusted tax rates to be approximately 36% for 2015.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, the company presents certain non-GAAP financial information for the second quarters of 2015 and 2014, including EBITDA, Adjusted EBITDA, adjusted net earnings, adjusted net earnings per diluted share, and adjusted operating income. Because these amounts are not in accordance with GAAP, reconciliations to net earnings and net earnings per diluted share as determined in accordance with GAAP are included at the end of this press release. The company presents these non-GAAP amounts because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance.

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.

Please follow this link to get the full release with figure tables
Published in financial News

ClearwaterPaper logo01Clearwater Paper Corporation has announced the retirement of Thomas A. Colgrove as president of the company's consumer products division. Mr. Colgrove will continue to serve as president of the division until the beginning of the second quarter. Patrick T. Burke, who currently serves as the company's vice president of supply chain, will assume the role of senior vice president and president of the company's consumer products division, when his successor for the supply chain function is appointed. Mr. Colgrove will also continue to serve the company until the end of 2015 to assist in the transition.

"Pat joined Clearwater Paper in May 2014," said Linda K. Massman, president and CEO. "During this time, Pat has proven his abilities to develop and implement a successful supply chain and warehouse operations strategy, and has also established himself as a valued and respected member of Clearwater Paper's leadership team."

Prior to joining Clearwater Paper, Mr. Burke spent nearly 30 years in manufacturing, warehouse operations and supply chain management leadership positions for PepsiCo, Quaker Oats and Ralston Foods. While at PepsiCo, he managed the Western Region of Gatorade with total sales of $4 billion. Mr. Burke received his Bachelor of Science from Jacksonville State University and his MBA from Ohio University.

"Pat's extensive experience leading manufacturing and supply chain operations, and implementing continuous improvement practices for some of the country's largest consumer-products companies fits well with our company's strong focus on gaining efficiencies in every part of our operation," said Massman.

"Tom Colgrove has logged more than 40 years of industry experience, and has brought much of that knowledge and knowhow to bear, driving success at both the paperboard and tissue segments of our company for the past six years," said Massman. "All of us at Clearwater Paper thank Tom for his service and leadership, and look forward to continuing to work with him during this transition."

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

Published in North American News

clearClearwater Paper Corporation (NYSE:CLW)(the "Company") has announced the Company has sold its specialty products business and mills to Dunn Paper, Inc. The Company intends to reinvest the net proceeds of the sale into capital projects within its Consumer Products Division.

The transaction, which closed today, includes the sale of five Clearwater Paper subsidiaries with facilities located at East Hartford, Conn., Menominee, Mich., Gouverneur (Natural Dam), N.Y., St. Catharines, Ontario, and Wiggins, Miss.

"The sale of the specialty products business sharpens our Consumer Products Division's focus on the core retail business," said Linda Massman, president and CEO. "It's about improving our approach and efficiencies in all parts of our business while meeting or surpassing our customers' expectations, and our Company financial goals. We believe that the capital projects in which we will invest the proceeds of this sale can yield a 300 to 400 basis point improvement in the Consumer Product Division's EBITDA margins over the next three years."

"On behalf of Clearwater Paper, we sincerely thank the specialty products team for their hard work and commitment to providing our customers with high-quality products and services," said Massman.

Effective today, 470 specialty products employees are now employees of Dunn Paper.

"We are very pleased to welcome the exceptional people who lead and work at these specialty mills to the Dunn Paper team," said Brent Earnshaw, CEO of Dunn Paper. "Combining the unique assets, capabilities and products of these mills with Dunn Paper's Port Huron mill will lead to a specialty paper company with unmatched product offerings for our diverse customer base."

FBR Capital Markets & Co., led by Matthew Spain, advised Clearwater Paper on the sale of the specialty products business. 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, hard 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 DUNN PAPER

Dunn Paper, Inc. is a leading specialty paper manufacturer with customers worldwide. Dunn Paper produces a wide array of specialty waxed, coated and uncoated machine-glazed papers used in various food packaging and specialty label applications. Dunn Paper is located in Port Huron, Mich., approximately 60 miles north of Detroit.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended, including, but not limited to, statements regarding the Company's reinvestment of proceeds, improved efficiencies, customer expectations, Company financial goals and EBITDA margins. These forward-looking statements are based on current expectations, estimates and assumptions 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 customer acceptance and quantity and timing of purchases of the Company's new TAD products; competitive pricing pressures for the Company's products, including as a result of increased capacity as additional manufacturing facilities are operated by the Company's competitors; difficulties with the optimization and realization of the benefits expected from the Company's TAD paper machine and converting lines in North Carolina; the loss of or changes in prices in regards to a significant customer; manufacturing or operating disruptions, including IT system failures, equipment malfunction and damage to the Company's manufacturing facilities; changes in the cost and availability of wood fiber and wood pulp; changes in transportation costs and disruptions in transportation services; labor disruptions; changes in costs for and availability of packaging supplies, chemicals, energy, and maintenance and repairs; changes in customer product preferences and competitors' product offerings; changes in expenses and required contributions associated with the Company's pension plans; environmental liabilities or expenditures; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which the Company operates; cyclical industry conditions; or inability to successfully implement the Company's expansion strategies; 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.

For additional information on Clearwater Paper, please visit our website at www.clearwaterpaper.com.

News media
Clearwater Paper Corporation
Matt Van Vleet, 509-344-5912
Vice President, Public Affairs
Matt.VanVleet@clearwaterpaper.com
or
Investors
Clearwater Paper Corporation
Robin Yim, 509-344-5906
Vice President, Investor Relations
robin.yim@clearwaterpaper.com

Source: Clearwater Paper Corporation

Published in North American News

ClearwaterPaper-logo01Clearwater Paper Corporation has announced that its board of directors has authorized the repurchase of up to $100 million of the company’s common stock, demonstrating the company’s strong balance sheet and positive outlook on its business. This authorization follows the successful completion of the company’s previous $100 million stock repurchase authorization, which was implemented by the board in February 2014. Clearwater Paper expects to fund the repurchase through available cash resources.

“At the same time, we are committed to maintaining a strong balance sheet and financial position. Since beginning our stock repurchase programs in 2011, we have returned $230 million to our shareholders.”

“Today’s announcement of a new stock repurchase program reflects our confidence in future cash generation capabilities and commitment to return capital to shareholders,” said Linda K. Massman, president and chief executive officer. “At the same time, we are committed to maintaining a strong balance sheet and financial position. Since beginning our stock repurchase programs in 2011, we have returned $230 million to our shareholders.”

The repurchase program authorizes the company to purchase its common stock, on occasion, through open market purchases, negotiated transactions or other means (including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions). The company has no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue and bleached paperboard and pulp at 13 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 partnerships through quality and service.

Published in financial News

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

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard and pulp at 13 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 partnerships through quality and service.

  • Contacts

    Investors:
    Robin Yim, 509-344-5906
    robin.yim@clearwaterpaper.com
    Vice President, Investor Relations

Published in financial News

clearwater border logoAt a ceremony today in North Las Vegas, Nev., Clearwater Paper Corporation (NYSE: CLW) received the Nevada Occupational Safety and Health Administration's (OSHA) highest level of recognition offered by the agency's Voluntary Protection Programs (VPP) as Star status. Clearwater Paper now becomes one of only nine such VPP sites in the state of Nevada.

"At Clearwater Paper, we believe that safety comes first in everything we do, and we put that concept into action by striving for continuous safety improvement," said Linda K. Massman, president and CEO. "Today's event is a time to reflect and celebrate a truly great safety achievement that required five years of hard work and collaboration with OSHA, but more importantly recognize that what our employees have put in place today will help protect each individual and fellow employees going forward."

In order to attain VPP Star status, Clearwater Paper's Las Vegas facility completed a multipoint safety and health analysis and an intensive on-site inspection by OSHA staff. Both include proactive measures to prevent fatalities, injuries and illnesses through a program of focused management commitment and employee involvement, hazard prevention and control, worksite analysis, and safety and health training.

"My fellow employees were determined to reach VPP Star status, and we did it by building a positive and productive partnership with OSHA—this is a big day for all of us," said Nick Marquart, Clearwater Paper's safety and VPP coordinator at the Las Vegas facility. "We were also very pleased to see so many of our elected representatives and agency officials come to help celebrate our success, including our Nevada Congressional delegation, Governor Sandoval's office, our state representatives, and many important agencies, including of course, OSHA."

VPP promotes effective worksite-based safety and health. In the VPP, management, employees, and OSHA establish cooperative relationships at workplaces that have implemented a comprehensive safety and health management system. Acceptance into VPP is OSHA's official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health.

Source: Clearwater Paper Corporation

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard and pulp at 13 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 partnerships through quality and service.

  • Contacts

    Clearwater Paper Corporation
    Matt Van Vleet, 001-509-344-5912

Published in North American News
clear
Goldman Sachs 2014 Montreal Paper, Forest Products and Packaging Conference
Bank of America Merrill Lynch 2014 SMID Cap Conference

Clearwater Paper Corporation (NYSE:CLW) today announced its upcoming investor conference schedule:

March 18, 2014 – Bank of America Merrill Lynch SMID Cap Conference, 11:45 a.m. Eastern Time

March 19, 2014 – Goldman Sachs 2014 Montreal Paper, Forest Products and Packaging Conference, 8:00 a.m. Eastern Time

A live webcast and accompanying slide materials from Bank of America Merrill Lynch’s SMID Cap Conference can be accessed on the Investors section of Clearwater Paper’s website at http://ir.clearwaterpaper.com/events.cfm. A replay of the webcast will be available for at least 90 days after the presentation date.

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard and pulp at 13 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 partnerships through quality and service.

  • Contacts

    Clearwater Paper Corporation
    Robin Yim, 509-344-5906
    robin.yim@clearwaterpaper.com
    or
    IR Sense
    Sean Butson, 509-344-5906
    sean.butson@clearwaterpaper.com

Published in North American News

clearClearwater Paper Corporation (NYSE:CLW) has announced the permanent and immediate closure of its Long Island, N.Y., tissue converting and distribution facility.

"After thoughtful consideration, we have determined that permanently closing our Long Island plant and consolidating manufacturing at the company's other lower-cost tissue facilities is a necessary step for Clearwater Paper," said Tom Colgrove, president of the company's consumer products division. "This has been a tough decision, one where we carefully reviewed all alternatives to closing the plant."

The company will work closely with the New York Department of Labor's Rapid Response Unit to assist employees in receiving training or educational benefits or other benefits that enable them to find new employment as quickly as possible. The company will also provide career assistance services to help employees through this difficult time.

Displaced employees will have the opportunity to apply for open positions at other Clearwater Paper facilities. In addition, employees will be offered separation pay.

The company expects the total impact of non-recurring exit related costs to be approximately $12-$15 million, of which approximately $10 million is expected to be incurred in 2014 and the remainder in 2015. The cost savings benefits resulting from the facility consolidation and optimization, which are incremental to the company's previously announced cost savings programs, are expected to be approximately $6 million in operating costs savings in 2014 and approximately $12 million on an annual basis to be fully realized beginning in the first quarter of 2015.

"Clearwater Paper wants to ensure we are doing as much as we can to help the 155 affected Long Island employees through this difficult time," said Colgrove. "We are working with local and state agencies plus a private job transitional service to supply multiple job options to the employees."

Source: Clearwater Paper Corporation

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard and pulp at 14 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.

  • Contacts

    CFO:
    John Hertz, 001-509-344-5905

Published in North American News
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