SPOKANE, Wash., Jun 10, 2010 (BUSINESS WIRE) -- At a ceremony today in North Carolina, Gov. Bev Perdue announced that Clearwater
Paper Corporation (NYSE:CLW) has chosen Shelby as the location to
build its newest tissue facility. The company had previously announced
the project, which includes a Through-Air-Dried (TAD) paper machine and
seven converting lines capable of producing ultra grades of private
label tissue products.
"Clearwater Paper's decision to locate in North Carolina is certainly
great news and we welcome them to our state," said Gov. Bev Perdue.
"Companies know that our state's skilled workforce, nationally
recognized education programs and top-rated business climate provide the
perfect formula for businesses to succeed and grow."
"After nearly a year of analysis--looking at important aspects such as
current customer base and growth opportunities, logistics and
transportation infrastructure, available workforce skills and abilities,
tax structure, incentives and quality of life, and subject to local and
state incentives being granted, Clearwater Paper has chosen Shelby to be
the home of our newest tissue facility," said Gordon Jones, chairman,
president and CEO of Clearwater Paper. "From the Governor to the
Department of Commerce to Cleveland County's economic development team,
we found North Carolina to be not only very responsive to our company's
business needs, but endowed with a dedicated, positive group of people
who are a pleasure to work with."
Clearwater Paper intends to move forward as soon as possible with
construction of the facility, which will include a 200-inch TAD tissue
machine together with a total of seven converting lines, and has
estimated the project will cost $260 to $280 million. Over the next 12
years, state and local incentives associated with the project are
expected to be worth nearly $50 million in the aggregate.
"The Shelby facility will increase our ultra and premium offerings to
our existing Southern and East Coast customers," said Bob DeVleming,
vice president, consumer products division. "We believe it will also
create new opportunities to expand our private label consumer tissue
business to other retail grocery chains in the region, and we are very
pleased with the initial work by North Carolina officials. We are ready
to get started."
The company intends to break ground during the third quarter of this
year. Build-out and start-up for the converting lines will come in
phases, with the first two lines expected to begin production during the
second half of 2011. The paper machine is expected to take two years to
build from completion of engineering, and the company anticipates
beginning production on the machine in the second half of 2012. At full
production capacity the facility will produce approximately 10 million
cases or 70,000 tons of bathroom tissue and household towels annually.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, bleached
paperboard and wood products at six facilities across the country. The
company is a premier supplier of private label tissue to major retail
grocery chains, and also produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
2,500 employees build shareholder value by developing strong customer
partnerships through quality and service.
FORWARD LOOKING STATEMENT
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 company's growth strategy
and expansion plans, capital costs associated with the expansion,
initiation and completion of new operating facilities, tax incentives,
production capacity, and customer base. 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 execute on its strategies; unanticipated
construction and manufacturing disruptions; customers' product
preferences, changes in the United States and international economies;
changes in raw material and energy costs; cyclical industry conditions;
loss of a large customer; competitive pricing pressure for the company's
products; changes in freight costs and disruptions in transportation
services; changes in general and industry-specific laws and regulations;
unforeseen environmental liabilities or expenditures; 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.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com.
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SOURCE: Clearwater Paper Corporation
Clearwater Paper Corporation
(News media)
Matt Van Vleet, 509-344-5912
or
(CFO)
Linda Massman, 509-344-5905
or
(Investors)
IR Sense
Sean Butson, 509-344-5906
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