Company to consolidate regional manufacturing
SPOKANE, Wash.--(BUSINESS WIRE)--
Following a comprehensive analysis, Clearwater Paper Corporation
(NYSE:CLW) today 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 closing
Thomaston 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 at Oklahoma 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.
ABOUT CLEARWATER PAPER
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.
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 schedule for the closure of
the Thomaston facility, improvements to customer service, logistical
improvements, the integration of equipment, the costs associated with
the closure of the Thomaston facility and the cost savings benefits
associated with the integration of facilities. 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,
risks and uncertainties arising from the possibility that the closure of
the facility may be delayed or may not occur; difficulties with the
relocation and optimization of converting lines; manufacturing or
operating disruptions, including equipment malfunction and damage to the
company's facilities; changes in freight costs and disruptions in
transportation services; labor disruptions; difficulties with the
optimization and realization of the benefits expected from the company's
new through-air-dried paper machine and converting lines in Shelby,
North Carolina; changes in costs for and availability of manufacturing
inputs, including pulp, packaging supplies and chemicals; increased
costs for and energy and maintenance and repairs; competitive pricing
pressures for the company's products, including as a result of increased
capacity as additional manufacturing facilities are operated by
competitors; changes in customer product preferences and competitors'
product offerings; general economic conditions in the regions and
industries in which the company operates; changes in the United States
and international economies; cyclical industry conditions; changes in
general and industry-specific laws and regulations; unforeseen
environmental liabilities or expenditures; 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
News media:
Matt Van Vleet,
509-344-5912
or
John Hertz, CFO, 509-344-5905
or
Investors:
Sean
Butson, 509-344-5906 (IR Sense)
Source: Clearwater Paper Corporation
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