Fortress Paper CEO Sees Bright Future in Dissolving Pulp
Chad Wasilenkoff, CEO, Fortress Paper Ltd.
July 12, 2012 (Bloomberg) - Fortress Paper Ltd. Chief Executive Officer Chad Wasilenkoff says his strategy of buying unprofitable Canadian pulp mills will either spark a rally or push him to buy the whole company.
Wasilenkoff is betting idled paper-grade pulp mills can be transformed into some of the world’s lowest-cost makers of the pulp used in synthetic fabrics and LCD screens. Fortress bought a second Quebec mill last month and the CEO said he’s in talks to acquire another in North America and one in Europe.
The growing market for so-called dissolving pulp, combined with Fortress’s cheap acquisition costs, government financial support and wage concessions from workers, will generate“staggering” returns for investors, Wasilenkoff said. Fortress’s market value has declined 56 percent in the past year.
“We are going to see a significant upward movement in the shares in the next 12 months,” Wasilenkoff, who also is chairman, company founder and its largest shareholder, said in an interview near Fortress’s North Vancouver headquarters. “If we don’t, I’d consider taking the company private.”
Read full story at: Fortress Paper CEO Defies Investors to Buy Into Pulp Plan
(external link to Bloomberg)