Glatfelter Concludes Strategic Review for Specialty Paper Production in Ohio, Pennsylvania
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Prior to selling its Specialty Papers division for $360 million Glatfelter (York, Penn., USA) concluded its strategic review on July 31, 2018 of the business unit in which the Chillicothe, Ohio mill, a smaller Ohio facility in Fremont, and a production facility in Spring Grove, Penn., played a significant role in the results.
Higher prices for wood pulp purchased elsewhere was one issue, while regular maintenance shutdowns covering a broad scope of work at both the Ohio and Pennsylvania facilities and a slower ramping back up of production than also expected negatively impacted profitability. The negative impact was offset slightly on the revenue side by market price increases for the products produced at the mills.
Company officials said there is a bright side for Specialty Papers, however, for the remainder of the year.
Price increases in the paper market should accelerate later in the year and into early 2019, and shipping volumes are projected in the July through September period to increase about 8% compared to the second quarter.
Third quarter results may be impacted by a July press roll failure in one of Chillicothe's paper machines, Jacunski said, causing a temporary halt in production from that machine. Slightly higher energy and raw materials costs could also have a negative impact.
In its other divisions, Glatfelter saw a net sales increase of $9.8 million in Composite Fibers in the second quarter and a $10 million net sales increase quarter-over-quarter in Advanced Airlaid Materials.
