BRENTWOOD, Tenn., June 12, 2017 /PRNewswire/ -- Orchids Paper
Products announces the startup of its new State of the Art 100% QRT
Paper Machine in Barnwell, South
Carolina, with paper machine capacity of 35,000 tons per
year. The QRT Paper Machine, developed by Valmet, is new
technology capable of manufacturing both ultra-premium and premium
tissue, towel, facial, and napkin paper at a lower manufacturing
cost compared to traditional ultra-premium machines. This paper is
an integral part of Orchids strategy to penetrate the ultra-premium
tissue and towel market, which is growing at a rate of 3-5%
compared to a 1% overall tissue market growth rate. The machine
will also provide flexibility to produce premium products which
will give our retail customers more choices in product selection
within the premium and ultra-premium product segments. The
paper machine has started up in optimization mode and is expected
to be producing at 70% of production capacity in the third quarter
of 2017, 85% in Q4 and 100% by January 1,
2018.
This schedule will help Orchids satisfy the significant
additional demand for the premium bath tissue and towel business
from a major new customer, which was announced earlier this year.
Shipments to that customer started as scheduled in June from both
Pryor and Barnwell and full
implementation of the sales to this customer are expected in July.
In addition to helping satisfy this demand, the new machine allows
Orchids to selectively target additional business, both private
label and branded, in the ultra-premium sector of the paper
market.
Jeff Schoen, Orchids Paper
Products CEO, stated, "QRT technology is a quantum step forward
in terms of quality, capacity, and opportunity for Orchids. The new
paper machine provides the flexibility to manufacture the highest
quality products at a competitive cost advantage, and increases our
ability to diversify our business."
A "Ribbon-Cutting Ceremony" celebrating the completion of the
Barnwell facility will be
conducted at 11 AM EDT on
June 14 at Orchids Paper Products in
Barnwell, South Carolina, with
local officials attending.
Orchids Paper Products (NYSE: TIS) is a publicly traded
company founded in 1998 with Corporate headquarters located in
Brentwood, TN.
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SOURCE Orchids Paper Products Company