Profile: Clearwater Paper Corp (CLW.N)
14 Mar 2014
Clearwater Paper Corporation, incorporated on October 7, 2005, is a producer of private label tissue and paperboard products. The Company manufactures consumer tissue, away-from-home tissue (AFH), parent rolls (non-converted tissue product), machine-glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the United States and Canada. The Company’s products are primarily pulp-based and manufactured in the United States and Canada. The Company operates in two segments: Consumer Products segment and Pulp and Paperboard segment. Its private label tissue products, such as facial and bath tissue, paper towels and napkins, are used at-home and are sold to retailers and wholesale distributors. These include grocery, drug, mass merchants and discount stores. Its paperboard is sold in the packaging industry and is ultimately used by the customers to make packaging for products ranging from liquids to pharmaceuticals to consumer goods packaging. In December 2012, it acquired the assets of a wood chipping facility located in Clarkston, Washington, near our Lewiston, Idaho.
Consumer Products Segment
The Company’s Consumer Products segment manufactures and markets consumer private label tissue products in each tissue, including bathroom tissue, household paper towels, napkins and facial tissue. In bathroom tissue, it sells two-ply ultra and premium products. In household paper towels, it produces and sells through-air-dried (TAD) towels, as well as premium and value towels. In the facial category, it sells ultra-lotion three-ply facial tissue and a complete line of two-ply premium products. In napkins, it manufactures ultra two- and three-ply dinner napkins, as well as premium and value one-ply luncheon napkins. It manufactures and sells a range of away-from-home (AFH) products to customers with commercial and industrial business tissue needs. Products include conventional one- and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins.
The Company’s consumer products are manufactured on 21 paper machines in its facilities located throughout the United States and in Ontario, Canada. Parent rolls from these paper machines are then converted and packaged at designated converting facilities located across the United States. In addition to conventional paper making capabilities, two of its paper machines, located in Las Vegas, Nevada and St. Catharines, Ontario, produce TAD tissue that it converts into national brand paper towels. It is a producer of private label household tissue products in the United States. During the year ended December 31, 2012, it sold approximately 65% of the total private label tissue products sold in grocery stores in the United States. In the 11 western states, it sold approximately 96% of the total private label tissue products sold in grocery stores during 2012.
Pulp and Paperboard Segment
The Company Pulp and Paperboard segment manufactures and market bleached paperboard for the segment of the packaging industry and is a producer of solid bleach sulfate (SBS) paperboard. This segment also produces softwood market pulp, which is used as the basis for many paper products, and slush pulp, which it supplies to its Consumer Products segment. SBS is a paperboard grade that is used to produce folding cartons, liquid packaging, cups and plates, and commercial printing items. It’s Pulp and Paperboard segment operates facilities, in Idaho and Arkansas.
The Company’s bleached paperboard is converted by the customers into a range of products, including packaging for beverages, food products, pharmaceuticals, cosmetics, paper cups and plates and other consumable goods. It also manufactures bleached bristols. Its pulp and paperboard production consists primarily of folding carton, plate, liquid packaging, cup, plate,softwood pulp, and commercial printing grades. It also sells cup stock and plate stock paperboard for use in food service products. The Company’s Pulp and Paperboard segment also sells products for commercial printing applications. As of December 31, 2012, the Company had a production capacity of approximately 856,000 tons of pulp on an annual basis.
The Company competes with Procter & Gamble, Georgia-Pacific, Kimberly-Clark, International Paper, MeadWestvaco, and Rock-Tenn.
Clearwater Paper Corp
Suite 1100, 601 West Riverside A
SPOKANE WA 99201