Ruling Allows Delivery of TAD Paper Machine to Clearwater Paper by July
2012, Facilitating Completion of Shelby Tissue Facility on Schedule
SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today commented on the
ruling in the United States District Court for the District of South
Carolina in favor of Metso Paper USA and Clearwater Paper in connection
with a lawsuit filed by First Quality Tissue SE, LLC that sought to
enjoin Metso Paper from delivering a Through-Air-Dried, or TAD, paper
machine to Clearwater Paper.
"Clearwater Paper is very pleased with the court's decision to deny the
request for injunctive relief and dismiss the amended complaint, and we
look forward to completion of our Shelby TAD paper machine facility,"
said Gordon Jones, chairman and chief executive officer. "We expect that
the final components of our TAD paper machine will be delivered by Metso
Paper by July 2012, pursuant to our contract with them, and that our
Shelby TAD paper machine facility will be completed and begin operations
prior to the end of 2012."
In 2010, Clearwater Paper contracted with Metso Paper to construct a TAD
paper machine for its tissue manufacturing and converting facility under
construction at Shelby, North Carolina. Clearwater Paper's contract with
Metso Paper calls for an expected delivery of the TAD paper machine by
July 2012. In August 2011, First Quality filed a lawsuit against Metso
Paper seeking to enjoin Metso Paper from delivering the TAD paper
machine to Clearwater Paper based on the terms of an agreement between
Metso Paper and First Quality. Clearwater Paper intervened in the
litigation in November 2011 to ensure representation of its interests.
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 effects of the District
Court's decision, the delivery of TAD paper machine components, the
completion of the TAD paper machine and the expected timing of
initiation of overall operations of Clearwater Paper's Shelby paper
machine operations. Statements contained in this press release that
refer to non-historical facts reflect Clearwater Paper's goals and
expectations and are not predictions of actual performance or results.
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, an appeal of the District Court's
decision by First Quality, significant delays in the delivery of TAD
paper machine components or delays in the completion of the new Shelby
facility, and mechanical or other difficulties affecting the start-up of
operations at the new facility. 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.
Clearwater Paper Corporation
(News media)
Matt Van Vleet,
509-344-5912
or
John Hunter, 509-344-5947 (Interim CFO)
or
(Investors)
Sean
Butson, 509-344-5906 (IR Sense)
Source: Clearwater Paper Corporation
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