Buckeye Technologies puts bleached cotton fiber plant in NC up for sale
Jan. 23, 2007 - Buckeye Technologies today said that it intends to sell its Fiberline operation located in Lumberton, North Carolina.
The Lumberton operation has the capacity to produce 8,000 metric tons of fiber annually and is currently operating at about 90% capacity with annual sales revenue of approximately $14 million, Buckeye said.
"When Buckeye Technologies entered the bleached cotton fiber market in 2001, the new manufacturing line at the Lumberton site complemented the existing cotton linter fibers operation, John B. Crowe, Buckeye's chairman explained. "In August of 2003, we consolidated the Lumberton cotton linter fibers operation into our Memphis facility due to the decline in demand for cotton content printing and writing papers.
"Since 2003, the Lumberton team has made the necessary modifications to manufacturing costs and product mix to become a profitable, growing and labor efficient stand alone operation. However, with the closure of the cotton linter fibers operation, Buckeye Lumberton is no longer a strategic component of our future plans and we believe it could provide a strategic growth opportunity for the right owner," Crows said.
"If a suitable sales arrangement is not found, we intend to continue to operate and optimize Buckeye Lumberton," he added
Buckeye has retained Morgan Keegan and Company, Inc. as its exclusive financial advisor in connection with the possible sale of Buckeye Lumberton Inc. Interested parties should contact Morgan Keegan and Company at (901) 529-3713.
SOURCE: Buckeye Technologies, Inc.